Answer parts (a) - (e) below based on the AE equation AE = 2,500 + 0.9Y. (a) What is the level of autonomous expenditures? (b) If income is 1,000 what is the level of induced expenditures? (c) What is the MPE? (d) What is the value of the multiplier? (e) What is the level of equilibrium income?
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Answer parts (a) - (e) below based on the AE equation AE = 2,500 + 0.9Y.
(a) What is the level of autonomous expenditures?
(b) If income is 1,000 what is the level of induced expenditures?
(c) What is the MPE?
(d) What is the value of the multiplier?
(e) What is the level of equilibrium income?
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- In the equation AE = $2,000 + 0.8Y, autonomous expenditures are equal to 80 percent of income. [True or False] and EXplain WHYSuppose that the level of GDP increased by $400 billion in a private closed economy where the marginal propensity to consume is 0.60. Aggregate expenditures must have increased by. make sure the answer is accurate. Group of answer choices $400 billion. $160 billion. $240 billion. $80 billion.If the MPC=0.75, what is the effect of a $60 billion increase in autonomous consumption on RGDP? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- The potential GDP of the country is 380 billion euros, and the actual is 240. The marginal propensity to consume is 0.8. Determine the change in government expenditures to get to the equilibrium point:If the MPC in an economy is 0.75, government could close a recessionary expenditure gap of $300 billion by cutting taxes by Multiple Choice $400 billion. $300 billion. $75 billion. $225 billion.net taxes were lowered from $5000 to $1000, the MPC is .75, and autonomous consumption spending is $10,000, by how much would consumption increase?
- Question 3: At a level of National Income of AED 30,000 Million, the government announced an increase in expenditures from AED 1000 Million to AED 1500 Million as a stimulus package for infrastructure development and at the same time government also announced an increase in tax from AED 1000 Million to AED 1600 Million. The marginal propensity to consume (MPC) for the country is 0.75. Find the impact of these changes on National Income. Explain the leakages of multiplierMarginal propensity to consume = 0.8; In an economy with tax rate = 0.25 and Marginal propensity to import = 0.10, how much would an increase of 250 units in autonomous spending increase the equilibrium income level?Assume that the Equilibrium GDP is $4,000 billion. The Potential GDP is $5,000 billion. The marginal propensity to consume is 4/5 (0.8). By how much and in what direction should government purchases be changed? a. increase by $1,000 billion. c. increase by $100 billion. b. decrease by $1,000 billion. d. increase by $200 billion.
- If the government increases defense spending by $1 billion and the MPC is 0.8, how much additional spending will occur in the third “round” of spending? a. $1 billion b. $1.8 billion c. $800 million d. $640 millionSuppose that the government expenditure multiplier is equal to 6. By how much should the government decrease government expenditures (G) in order to close this inflationary gap?If changes to expenditures include consumption at $2000, investment at $600, government spending at $500, exports are $100, imports are $200 and the mpc is 0.75, then: the equilibrium income is $12,000 equilibrium income is $3000 the multiplier is 5 the slope of the AE curve is 0.25
