Consumption = 115 + 0.6Y Investment = 550 Use the above information to answer the questions that follow: 1. Calculate the value of autonomous spending. 2.Calculate the value of the multiplier. ( 3.Calculate the equilibrium level of income.

Consumption = 115 + 0.6Y Investment = 550 Use the above information to answer the questions that follow: 1. Calculate the value of autonomous spending. 2.Calculate the value of the multiplier. ( 3.Calculate the equilibrium level of income.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter23: The Aggregate Expenditure Model

Section: Chapter Questions

Problem 1P

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Question

Consumption = 115 + 0.6Y
Investment = 550
Use the above information to answer the questions that follow:
1. Calculate the value of autonomous spending.

2.Calculate the value of the multiplier. (

3.Calculate the equilibrium level of income.

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