Given the following: C = 150 + 0.25Y4 = 150 + 0.25(Y – T) I = 300 G = 450 T = 250 Solve for the values of equilibrium output, (equilibrium) consumption, and (equilibrium) disposable income. Do not round off values in your solutions. Round-off all final answers to 4 decimal places and key them into the text boxes below. Equilibrium Output (Y*) is equal to 3350 The consumption level corresponding to equilibrium output (C*) is equal to The level of disposable income corresponding to equilibrium output (Y;) is equal to
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- As shown in Exhibit 2, dissaving occurs: Group of answer choices at $5 trillion. between 0 and $4 trillion. where disposable income is greater than $4 trillion. at $8 trillion.Match the following terms ( terms are labeled 1-10 )to the correct definition(definitions are labeled a through J) aggregate consumption function, multiplier, planned aggregate expenditure (PAE), income-expenditure equlibrium GDP, marginal propensity to consume (MPC), consumption function, unplanned inventory investment, actual investment spending,inventory, autonomous spending A) The amount by which consumption rises when disposable income rise by one dollar marginal propensity to consume (MPC) B) The level of output (real GDP) at which output (real GDP) equals planned aggregate expenditure. income-expenditure equlibrium GDP C) The ratio of total change in real GDP caused by an autonomous change in aggregate spending. multiplier D) Total planned spending on final goods and services in the economy. aggregate consumption function E) The equation showing how individual household's consumer spending varies with its current disposable income. consumption function F) Consumption…Disposable income - 200, 225, 250, 275, 300Consumption - 205, 225, 245, 265, 285 Refer to the above data. The marginal propensity to consume is;
- If Andrea’s disposable income increases from $600 to $700 and her level of personal consumption expenditures increases from $450 to $475. You may conclude that her marginal propensity to consume is: Group of answer choices 0.5 0.1 0.75 0.25Which of the following statements is correct? A)Actual investment equals planned investment when inventories are declining. B)Actual investment equals planned investment when inventories rise. C)Actual investment and planned investment are always equal. D)Actual investment will equal planned investment when there is no unplanned change in inventories.Given the data shown in the table below, if planned investment increased by $100, the new equilibrium GDP would be approximately ________.
- Based on the condition and calculations, what is your conclusion on the marginal propensity to consumer (MPC) in ROW 4?If the consumption function is of the form C = 80 + 0.4Yd, the MPS equals Select one: A. -0.6. B. -0.4. C. 0.4. D. 0.6. Given an MPC equal to 0.9, a decrease in business investment expenditures by RM25 billion translates into Select one: A. an increase of agregate output by RM250 billion B. a decrease of aggregate output by RM25 billion C. an increase of aggregate output by RM250 billion D. a decrease of aggregate output by RM250 billion When income is equal to zero, consumption is equal to Select one: A. induced consumption B. aggregate consumption C. autonomous consumption D. endogeneous consumption If the MPC in a country is 0.8, the simple Keynesian multiplier would be Select one: A. 0.8 B. 1.8 C. 0.2 D. 5.0 Which of the following is multiplier formula? Select one: A. 1/MPC B. 1/MPS C. 1/APC D. 1/APSComplete the statements and then calculate the change in consumption. Options: disposable income marginal propensity to save. marginal propensity to consume. saving. wealth. The consumption function shows the relationship between consumption spending and ______ The slope of the consumption function is the______ Changes in consumption can be predicted by multiplying the change in ______ by the _______ If the MPC=0.80MPC=0.80 and disposable income increases by $1000$1000, then consumption will increase by what amount? Assume that there is no multiplier effect.
- The graph shows the relationship between real disposable income and planned consumption. The horizontal axis measures real disposable income, while the vertical axis measures the level of planned consumption. The graph shows a consumption function, represented by an upward-sloping, straight line. The consumption function intercepts the vertical axis at a point labeled A. The graph also shows a 45-degree line that passes through the origin. The consumption function and the 45-degree line intersect at a point labeled B. Refer to the above figure. Dissaving occurs, A. to the left of point B. B. to the right of point B. C. only at point A. D. only at point B.the closed economy of temasik has the following characteristics: autonomous consumption is rm 100 *marginal propensity to consume is 0.9 * investment expenditure is rm 460 *taxes are constant and equal to rm 400 *goverment purchases of goods and services is rm400 a)find the equilibrium level of real GDP b)suppose the goverment cuts its purchases of goods and services to rm 300.using the multiplier formula,calculate the change in real GDP. c)suppose the goverment maintains its purcase of rm400 worth of goods and services and instead cuts taxes to rm 300. using the multiplier formula,calculate the change in real GDP.If the investment multiplicator equals 1, it means that: Select one alternative: MPC = 2 MPC (Marginal Propensity to Consume) = 1 MPC = 0