Consumption = 115 + 0.6Y Investment = 550 Use the above information to answer the questions that follow: Q.4.1 Calculate the value of autonomous spending. Q.4.2 Calculate the value of the multiplier. Q.4.3 Calculate the equilibrium level of income.
Consumption = 115 + 0.6Y Investment = 550 Use the above information to answer the questions that follow: Q.4.1 Calculate the value of autonomous spending. Q.4.2 Calculate the value of the multiplier. Q.4.3 Calculate the equilibrium level of income.
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 1.1P
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Question
Consumption = 115 + 0.6Y
Investment = 550
Use the above information to answer the questions that follow:
Q.4.1 Calculate the value of autonomous spending.
Q.4.2 Calculate the value of the multiplier.
Q.4.3 Calculate the equilibrium level of income.
Q.4.4 Is the equilibrium level of income also the full employment level of income? Explain
your answer.
Q.4.5 Identify any three non‐income determinants of consumption.
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