alculate the increase in output (GDP) generated by $100 increase in autonomous spending for economies with different linear consumption functions. 200+0.9*(Y-T)
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200+0.9*(Y-T)
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- How can autonomous consumption be greater than zero when disposable income equals zero?Suppose autonomous consumption in an economy is $3 trillion, the MPC is 0.8, government spending is $700 billion, investment equals $600 billion, and net exports equal -100 billion. Calculate the equilibrium output value for this economy.Equilibrium GDP(Y)= Total demand is _ ___ (equal, greater, less) to production Private saving= Public saving= Total saving is _______ (equal, greater, less) investments
- Calculate MPC when a change in investment spending of 40 million leads to an increase in real GDP by 160 million.Find equilibrium level of national income from the following:- Autonomous consumption = $200 MPC = 0.8 Investment = $100 All the values are in million dollarsIndia is the second populous country in the world that has indicate growth improvement over time. Suppose consumption function for India is C = 250 + 0.6(Y – T) and taxes are autonomous which equal to $20. (a)Find India’s consumption function (C). (b)Suppose India’s investment (I) is equal to $300 and government spending (G) is equal to $150 at every level of disposable income. Calculate national income equilibrium for a 3-sectors economy. (c) In the same year, India seems to be very active in export and import activities. This sector has contributed $100 for net export (NX). Calculate national income equilibrium for the 4-sectors economy of India.
- Which of the following equations is correct for an economy that does not have a government or a foreign sector? Multiple Choice MPC × MPS = 1 MPC/MPS = 1 MPC - MPS = 1 MPC + MPS = 1True or False: Personal Consumption Expenditures account for about 25% of GDP. Spending on Consumer Durable Goods tends to be very stable from year to year. Sales of used goods are included in GDP at 35% of their original sale price.After government is added to the income-expenditure model, the formula for the aggregate consumption function is Group of answer choices C = a - b(T - Y). C = a + b(Y + T). C = a - b(Y - T). C = a + b(Y - T).
- The consumption expenditure and output of the country is 500 billion and 100 billion respectively. Calculate the average propensity to consume.The economy of Ghana has a saving function S= - 100 +0.2Y, investment equal to 66, government expenditure equal to 50, export equal to 20 and an import function of M= 0.1Y. (a). What is the consumption function of the economy (b). What is the aggregate expenditure function of the economy?Calculate the value of consumption expenditure from the following:- National income = $6000 Autonomous consumption = $1000 Marginal propensity to consume = 0.80