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croecon [pic] Introduction to Economics EF 110 Take home exercise Due date: Wednesday 27th April 6pm 2011 This assignment must be submitted via moodle EF110 homepage. This assignment accounts for 10% of the final module grade Answer all questions. Marks awarded for each question can be clearly seen. This is an individual test and while it is expected that you may consult notes, etc, the final work shown should be your work alone. Your signature below will be taken as fulfilling the usual declaration that what is shown on the following pages is your own work and not the work of others. |Student Name: |David Fogarty |…show more content…
( 10 marks) PART B From the following data, calculate the equilibrium national income Consumption function is represented by C= A+B(Yd) Where C= consumption component of GDP A= autonomous component of consumption function B= marginal propensity to consume (MPC) from disposable income Yd = disposable income If B= 0.8 and A= 40 And I=50, G=80, X=40, M=30, (Exogenous) Tax (T) =30% WHAT IS EQUIIBRIUM NATIONAL INCOME? (50 marks) Part A (i) Expenditure Method- Sales to Consumers total
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