Calculate autonomous spending with the given info C = 400 + 0.6Y

Q: For an IS/LM model of an economy with the following equations: C = 200 + 0.8Yd |= 220 – 25i - C =…

A: The IS-LM Model is defined as a model where IS stands for Investment-Savings and LM stands for…

Q: 15. Find consumption expenditure from the following Autonomous Consumption =Rs. 100 Marginal…

A: Definition:     consumption Expenditure is the spending by families on labor and products,…

Q: With the help of a diagram, explain the derivation of the TotalRevenue curve.

A: Total Revenue Total revenue refers to the sum of all goods and services sold. It is computed by…

Q: Consider the following information: MPC = 0.9 Autonomous Investment = R200 m Autonomous…

A: Marginal propensity to consume: It measures the proportion of the change in the consumption level…

Q: Show the change, if any, from SRAS to SRAS1 with an arrow indicating direction of change and explain…

A: Economists and policymakers generally use a graphical depiction of the market condition because it…

Q: The disposable income is 10000 and the level of consumption is 8000. Calculate average propensity to…

A: The percentage of income that an individual spends on goods and services is the average prospensity…

Q: Find national income from the following  Autonomous consumption $100 Marginal propensity to consume…

A: According to question we are given Autonomus consumption =$100 Marginal propensity to consume =$0.60…

Q: Where 9. 10 0.5 20 0.05 100 100 0.1 In equilibrium aggregate consumption (C) is equal to: A. 180 В.…

A: Y = C + I + G Putting given values, Y = 10 + 0.5 x [Y + 20 - 0.1Y] + 100 + 0.05Y + 100 + 20 + 0.1Y Y…

Q: Find the value of consumption when autonomous consumption is 300 the value of MPC is 0.9 and income…

A: Generally in the given question Value of autonomous consumption = 300 Value of MPC = 0.9 Income =…

Q: For an IS/LM model of an economy with the following equations: C = 200 + 0.8Yd | = 220 – 25i = 240…

A: The money supply is the supply of currency by the central bank of the country. It means the…

Q: If aggregate expenditures are equal to 15,000, and GDP is 20,000, then unplanned investment is…

A: At equilibrium, Aggregate expenditure is equal to GDP. That means planned expenditure equal to GDP.…

Q: Calculate the MPC when MPS is given to be as 0.9

A: Marginal propensity to consume (MPC) refers to the proportion of increase in income that a consumer…

Q: Given the import function, Z = 300 + 2/3Y, which of the following statements is correct? (a) The…

A: Import- The goods and services that are produced in foreign countries and purchased by residents of…

Q: Calculate the average propensity to consume if consumption is $1800 and the income is $2200

A: The given information is:- Consumption = $1800 Income = $2200 We have to calculate APC

Q: Which of the following is a leakage from the circular flow of income and expenditure in South…

A: Leakage is something which lowers the income across the economy (outflow of income) and injection is…

Q: Assume the following: Aggregate Expenditures (AE) = $2,500 • National Income (Y) = $1,500 •…

A: Aggregate expenditure: AE = C + I + G + X - M => AE = 150 + 0.9(Y-T) + 500 + 800 + 600 -0.10Y…

Q: What effect has the hand sanitiser market during COVID had on Australia's GDP?

A: During the COVID pandemic demand for sanitizers increased explicitly which as a result caused the…

Q: Consider the following is the economy of Country W: C = 100 + 0.8Y I = 150 Answer the following…

A: We have, C= 100 + 0.8 Y I = 150 a) In the aggregate expenditure approach, Y = C+ I Y = 100 + 0.8 Y +…

Q: Disposable Income (Y) $0 $100 $200 $300 $400 Consumption Spending (C) $100 $180 $260 $340 $420 $500…

A: The marginal propensity to consume is the change in consumption in response to change in the income…

Q: If all 110 million households spent the same additional dollars on appliances, electronics, and…

A: The aggregate expenditure includes all the components of the households like the aggregate…

Q: calculate the value of MPS when MPC is given to be as 0.37

A: # The relationship between MPS and MPC is given to be as :- MPS + MPC = 1

Q: The national income model for an economy is represented as follows (units are in Ksh.M) Y = C + I +…

A: (Q)The national income model for an economy is represented as follows (units are in Ksh.M) Y = C + I…

Q: If autonomous planned investment increases by $100, and the MPC = 0.8, in the first round of…

A: Given  Change in autonomous investment ∆I=$100   MPC=0.8

Q: Calculate the value of MPC when MPS Is 0.41

A: # MPC measures the degree of change in consumption with respect to income and on the other hand MPS…

Q: Calculate MPC when MPS is given to be as 0.9

A: # We know well that the sum of MPS and MPC is given as 1 MPS + MPC = 1

Q: Calculate the value of MPS when the value of MPC is 0.13

A: The formula for MPS is given as:- MPS = 1 - MPC

Q: Calculate multiplier if MPC is 0.77

A: The formula and calculation: Multiplier =11-MPC=11-0.77=4.34782609=4.35

Q: Which equation represents the macroeconomic equilibrium condition in the aggregate expenditure (AE)…

A: Investment comprises of the following three components: a) Demand for new capital goods by business…

Q: Calculate multiplier if MPC is 0.75

A: Spending multiplier: - it is a fraction that shows the magnitude of the change in national income…

Q: Consider the simplest macro model with demand-determined output. The equations are: C = 100 + 0.8…

A: Aggregate expenditure is the sum of consumption spending, investment, government purchases and net…

Q: the consumption schedule shows

A: The consumption schedule shows the relationship between consumption and level of disposable income.…

Q: Autonomous consumption is independent of income and must equal to zero True False

A: Consumption is an important component of aggregate demand or GDP that is determined by the use of…

Q: Assume that autonomous consumption is $1,625 billionand disposable income is $11,500 billion.…

A: Consumption expenditure refers to the spending on consumption out of disposable income. When…

Q: The simple economy of Altria shown in the table below has no government or taxes and no…

A: Autonomous Investment: An investment that does not depends on the income/output or the rate of…

Q: Inflationary GDP is the amount by which equilibrium real GDP falls short of the full employment…

A: Inflationary gap is said to exists when the aggregate expenditure exceeds the full employment real…

Q: Why/how has Covid-19 led to global economic recession?

A: Recession is a period which is characterized by significant decline in general economic activity.…

Q: All Numbers are in S Billion Output Consumption Income Spending Net Taxes 100 Investment Government…

A: In an economy, unplanned inventory refers to the amount of output gap between the actual output and…

Q: In an economy, as per the aggregate income identity : Y=C+I+G+X−M. Assuming the following relations…

A: Given  Consumption function:  C=c0+c1(1-t)Y                                        ........(1)…

Q: Define

A: In economic matters, inflation is a general expansion in the costs of labor and products in an…

Q: Comment with the help of example and graphically as wel

A: An increase in the savings ratio can have a major impact on economic activity. Savings and…

Q: Reporting activities begin with the planning and compilation of programs and activities required in…

A: National expenditure is the total expenditure level of an economy. It is equivalent to its total…

Q: If the consumption is 450 and the investment is 240 find the aggregate demand

A: Aggregate demand (AD)= Consumption +Investment +Government spending +(Export-Import)

Q: Calculate the value of multiplier in an economy where LRR is 37%

A: The information being given is:- Legal reserve ratio in the economy = 37% = 0.37 Multiplier = ?

Q: How can autonomous consumption be greater than zero when disposable income equals zero

A: In the consumption function C = a + by, 'C' is total consumption, a is autonomous consumption, 'b'…

Q: Find the value of MPC if MPS is 0.4.

A: Given: Marginal propensity to save = 0.4

Q: Find the average propensity to consume and consumption is given as $1300 and income is given as…

A:

Q: The equation for the aggregate consumption function is

A: The consumption function can be written as follows: