Consider the following numerical example of the simple Keynesian model with no government spending, taxes or foreign sector(all figures in R million): C=100+0,9Y I=50 a, what is the value of the marginal prosperity to consume (MPC) in the model. b, use a graph to illustrate the equilibrium level of output.
Consider the following numerical example of the simple Keynesian model with no government spending, taxes or foreign sector(all figures in R million): C=100+0,9Y I=50 a, what is the value of the marginal prosperity to consume (MPC) in the model. b, use a graph to illustrate the equilibrium level of output.
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter11: Fiscal Policy: The Keynesian View And Historical Development Of Macroeconomics
Section: Chapter Questions
Problem 1CQ
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Consider the following numerical example of the simple Keynesian model with no government spending, taxes or foreign sector(all figures in R million):
C=100+0,9Y
I=50
a, what is the value of the marginal prosperity to consume (MPC) in the model.
b, use a graph to illustrate the equilibrium level of output.
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