Assume the following information for an economy: Natural level of output = $190b Autonomous consumption = 50 Total investment = 16 Government expenditure = 19 Autonomous taxation = 20 Marginal propensity to consume = 0.6 Based on this information answer the following questions: a) Calculate the actual equilibrium level of output for this economy.
Assume the following information for an economy: Natural level of output = $190b Autonomous consumption = 50 Total investment = 16 Government expenditure = 19 Autonomous taxation = 20 Marginal propensity to consume = 0.6 Based on this information answer the following questions: a) Calculate the actual equilibrium level of output for this economy.
Chapter9: Aggregate Expenditures
Section: Chapter Questions
Problem 15E
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Assume the following information for an economy:
Natural level of output = $190b
Autonomous consumption = 50
Total investment = 16
Government expenditure = 19
Autonomous
Marginal propensity to consume = 0.6
Based on this information answer the following questions:
a) Calculate the actual equilibrium level of output for this economy.
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