ECONOMICS In an economy the consumption function is C=500+0.75 Y, where C is consumption expenditure and Y is income. Calculate the equilibrium level of income and consumption expenditure when investment expenditure is $ 5,000.

Q: What determines the slope of a consumption function?

A: Consumption, represented as expenditure for utility acquirement. Consumption involves the ultimate…

Q: 1. Given the following table. Income (RM million) Consumption (RM million 100 100 150 200 200 300…

A: The provided table is: Income (RM million) Consumption (RM million) 0 100 100 150 200 200…

Q: The slope of the consumption function is positive and equals 1-MPC True False

A: A consumption function shows the relationship between desired consumption expenditure and desired…

Q: Assume in a simple economy that the level of saving is –500 when aggregate output equals zero and…

A: Given that:  Savings (so ) = -500 ; when aggregate output is zero. The marginal propensity to save…

Q: In an economy, autonomous consumption expenditure is $50 billion, investment is $200 billion, and…

A: "Since you have posted a question with multiple sub-parts will solve first three subpart for you.To…

Q: Draw the consumption function for the economy of Macroland C= 60+0.7Y with aggregate Income levels…

A: Consumption function indicates the relationship between the consumption and income.

Q: A certain economy's consumption function is given by the equation C(x) = 0.85x + 5 where C(x) is…

A: Consumption function gives the relationship between consumer spending and the various factors…

Q: Which one of the following statements about consumption spending is incorrect? А. Spending on…

A: Consumption Spending is one of the most important component of Gross Domestic Product. Consumption…

Q: The graph represents consumption (C) as a function of disposable income (DI). Assume the consumption…

A: We have: DI represents disposable income C represents consumption. ------------------- According to…

Q: If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables…

A: Given data: Consumption, C= 50+0.75Y  Investment, I=250 MD Government expenditure (G)=200 MJD, Net…

Q: Question 1: If C=$400 + 0.75YD and Ip=$600, then the Equilibrium level of output is

A: Note: Since you have posted multiple independent questions in the same request, we will solve the…

Q: C = 400 + 0.80Y and I = 200, then the level of consumption at equilibrium income is equal to

A: Equilibrium level of income: Y = C + I + G + NX where, Y is the income C is the consumption  I is…

Q: Explain consumption function, with the help of a schedule and diagram (I need correct answer…

A: Consumption shows the positive relationship between the Consumption and disposable income of the…

Q: When a business buys a new computer to design its product, this spending is called?   A. Goverment…

A: Expenditure- It is the amount that is spent on something. It is divided into four parts i.e.…

Q: I consumed all my income at every level of  income.Draw my consumption and saving function.What are…

A: Income is the amount of money earned by giving its services. Consumption refers to the spending on…

Q: Classify each of the following items as a final good or service or an intermediate good or​ service,…

A: A. A textbook bought by a student is a final good that is consumption expenditure. Consumption goods…

Q: The fundamental equations in an economy are given as: Consumption function C =200+0.8yd Investment…

A: The consumption function is given                                                 C   = 200 + 0.8Y…

Q: How is it possible for consumption expenditure to be positive even when disposable income is zero?

A: The consumption function gives the relationship between consumption and disposable income.

Q: What is consumption function? Differentiate between Keynesian consumption theory and Permanent…

A: A) Consumption function, in financial matters, the connection between buyer spending and the…

Q: The MPC measures the relationship between:     a change in consumption and a change in income.…

A: Option A is correct

Q: Explain what the consumption function shows, and describe what is held constant along the…

A: The consumption function is an important concept of national income. It relates to the consumption…

Q: A certain economy's consumption function is given by the equation C(x) = 0.85x + 4 where C(x) is…

A: Given, C(x) = 0.85x + 4

Q: Calculate the equilibrium income by using the consumption function formula. 1. Y =C 2. Y= C+I 3. Y =…

A: The equilibrium level of income is the income where all the production in the economy is equal to…

Q: If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables…

A: Given data: Consumption, C= 50+0.75Y  Investment, I=250 MD Government expenditure, G=200 MJD, Net…

Q: Refer to the information provided in table below to answer the questions that follow.   Y C S 0…

A:

Q: The following are exogenous (not directly affected by income): G = 9 I = 14 X = M = 0 The…

A: We are authorized to answer one question at a time since you have not mentioned which question you…

Q: An economy has a consumption function: C = 400 + .9DI Investment is 1,000. Government purchases are…

A: here we calculate the equilibrium level of output and choose the correct option which are as follow-

Q: he following graphs show an economy’s initial position at point A along its consumption function…

A: An increase in the disposable income will become the cause of movement along with the consumption…

Q: uestion 1: In an economy C = 350 + 0.75 Y is the consumption function where C is consumption…

A: We measure the output of an economy using the gross domestic product. GDP or the gross domestic…

Q: Draw the consumption function as the relation of the consumer's income and expenditure. What does…

A: Consumption refers to the process of using and consuming by purchasing goods and services from the…

Q: Is the following statement TRUE or FALSE? Please provide reason for the answer. The positive…

A: Disposable income is the left amount in hand after paying taxes . And it is used for consumption of…

Q: Consider the following consumption function: C= 100 + 0.65YD- At what level of disposable income…

A: Given; Consumption function; C=100+0.65YD Desired level of savings= 0 Y=CD+SD where; Y=…

Q: expenditure at equilibrium level of national income. (1) C = 200 + 0.5 Y is the consumption…

A: The equilibrium level of the national income refers that when  the aggregate supply and the…

Q: The accompanying graph represents the aggregate consumption function for the small island nation of…

A: Aggregate Autonomous consumer spending is that spending which are not depend on income level or…

Q: 38. An economy is in equilibrium. From the following data about an economy, calculate autonomous…

A: Autonomous consumption refers that it is the consumption which is done by a consumer even when they…

Q: (Consumption) Use the following data to answer the questions below: Consumption Real Disposable…

A: 1. The table is completed as follows.

Q: Use the following information on economy X to answer the questions below. Consumption function: C=…

A: Given  Consumption function: C = 250 + 0.8Y, Investment spending: I = 150, Government spending G =…

Q: If a household experiences an $880 increase in consumption with a $1,100 increase in disposable…

A: Marginal propensity to consume shows the fraction of additional income that is spent on consumption.

Q: In the above table, C is consumption expenditure, / is investment, G is government expenditure, X is…

A: Option (b).

Q: Given the consumption function below C = α + βY, if β is 0.4, how can it be interpreted? Select one:…

A: We are going to find the impulse response function to answer this question.

Q: D00 crore Q.22. In an economy, C = 1000 + 0.75Y is the consumption function, where C is consumption…

A: The total income (Y) of a consumer comprises of consumption spending (C) and the savings (S).

Q: 0.30. C = 100 + 0.4 Y is the Consumption Function of an economy where C is Consumption Expenditure…

A: # The sum of consumption and Savings is equal to the equilibrium level of national income.  AD or Y…

Q: The consumption demand function merely states that as income goes up, households consume all their…

A: Keynes psychological law of consumption clearly point the effect of increase in income on…