Assume a closed economy with no government. Suppose that autonomous consumption equals $400, planned investment equals $500, and the mpc equals 0.9. Using the information above, if planned investment decreases by $100, the equilibrium aggregate output will change by $
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- Suppose a closed economy with no government spending or taxing is capable of producing an output of $1600 at full employment. Suppose also that autonomous consumption is $120, intended investment is $160, and the mpc is 0.50. What is the value of output (Y) in equilibrium?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.in the aggregate expenditure model for a closed economy assuming investment, government spending and taxes are exogenous, if the marginal prosperity to consume is 0.8, a simultaneous 50 unit increase in government spending and a 20 unit decrease in investment will change equilibrium income by?
- Suppose a closed economy has an aggregate consumption function given by C = 50 + 0.50Yd and generates $2500 output and income in equilibrium. Suppose also that the government spends 400 and imposes a lump-sum tax of 100. What is the level of intended investment?If MPC is zero, the level of value of investment multiplier in a two sector economy will be a. Zero b. One c. Infinite d. Cannot be determined with the given informationIn a simple economy where there is no government and no international trade, the consumption function is given by the equation: C = £130m + 0.7Y What is the marginal propensity to save? a)0.7 b)1.0 c)0.3 d)130
- Assume a closed economy in which, there is no government. If autonomous consumption is80, autonomous investment is 70, and marginal propensity to save is 0.25 in this economy.Then calculate the amount of equilibrium output (income)?No written by hand solution Suppose an imaginary closed economy is characterized by the following: C = c0 + c1 (Y − T) T = t0 + t1Y I = 300 G = 300 C is consumption, Y and YD are, respectively, income and disposable income, T is the level of taxes, and I and G, are, respectively, private investment, and government spending. c0 and c1 are, respectively, autonomous consumption and the marginal propensity to consume; their values are unknown. However, the expression for private saving, S, is as specified below, where s1 is the marginal propensity to save out of total income. S = 0.4Y − 500 Assuming that the marginal tax rate, t1, is equal to 0.1 and the equilibrium GDP is 2000, find the level of autonomous taxes, t0, the equilibrium values of consumption, disposable income, and private saving.Suppose a closed economy has an aggregate consumption function given by C = 100 + 0.50Yd and generates $2400 output and income in equilibrium. Suppose also that the government spends 400 and imposes a lump-sum tax of 50. What is the level of intended investment? (round your answer to the nearest whole value)
- Suppose 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.Marginal 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?In a closed economy, consumers spend $300 regardless of the level of income, and the marginal propensity to consume (MPC) is 0.75. Investment is equal to $200. The government spends $400 and collects $50 in taxes. The equilibrium level of GDP in this economy is $
