If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables fixed at investment = 250 MD, Government expenditure = 200MJD, Net exports = 200MJD. The equilibrium income is equal to?

If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables fixed at investment = 250 MD, Government expenditure = 200MJD, Net exports = 200MJD. The equilibrium income is equal to?

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter18: The Keynesian Model

Section: Chapter Questions

Problem 6SQ

See similar textbooks

Related questions

Q: Compare different types of economic systems

A: Different economies of the world have different economic system depending upon various factors like ...

Q: Examine the Solow growth model. Assume that with d-0.1, s-0.2, n-0.01, and=1 and that the period is ...

A: Please find the answer below.

Q: Golf International Division designs and manufactures small engines for golf turf maintenance equipme...

A: Given that; MARR=10% The equivalent annual worth of B System can be calculated as follows. AWB=-ci(...

Q: 6. Because of the peso devaluation, a car costing P150,000 is to be purchased through a finance comp...

A: An effective interest rate is the return on a savings account or other when the effects of accumulat...

Q: Skill-biased technological change (that increases the optimal skilled-unskilled labour ratio for all...

A: The people that are being employed for carrying out work in the business and in return are provided ...

Q: In the figure below, Sai is the long-run domestic supply curve of oil without considering the climat...

A: Demand Curve: - demand curve is the graphical way of showing the relationship between the quantity d...

Q: (3) Consider the following figure about the real price of oil. Real price of oil 90 Start of pandemi...

A: The demand curve for labour, under the ceteris paribus assumption, shows the amount of labor employe...

Q: 1. An economy is characterised by the following equations: 60 + 0.9Yd C(Consumption) I (Investment) ...

Q: 9.3 (LG 9.1, 9.2) Find the present worth today in real value corresponding to the cur- rent values s...

A: Given: Inflation rate=4% Interest rate=4% Note: Due to multiple subparts being posted, the first thr...

Q: nd the capitalized cost at 15% interest, initial cost $200000, Annual operating cost $4000

A: Below is the given values: Interest rate = 15% Initial cost = $200000 Annual operating cost = $40000...

Q: The population of a city in 1983 and 2000 was 36 and 51.4 crores respectively. Find the annual simpl...

Q: (In this and all other questions in which a game matrix is given, Player 1 chooses the row, Player 2...

A: Iterated elimination of strictly dominated strategies (IESDS) The iterated elimination (or deletion)...

Q: If it is not profitable for more than a single firm to be in an industry, we have an example of Sele...

A: A monopoly is a single seller selling unique good in the market.

Q: 200 For the demand function q= D(p)=D find the following. (p + 5)3 a) The elasticity b) The elastici...

Q: In the figure below, Sai is the long-run domestic supply curve of oil without considering the climat...

A: A country becomes an importer when the world price is less than equilibrium price.

Q: The Global Macroeconomy While on a trip to Baja California, Mexico, in January 1994, Mary bought a h...

A: Macroeconomics (from the Greek word macro-, meaning "big") is a discipline of economics concerned wi...

Q: Ray is an employee at COB company who likes having burger (x) and Pepsi (y) during the break and the...

A: Introduction Ray is in the employee of COB company which likes to having burger (x) and Pepsi (y) du...

Q: Consider the local cable company, a natural monopoly. The following graph shows the monthly demand c...

A: At profit maximisation, marginal revenue is equal to marginal cost and price is determined by the de...

Q: Consider the compound interest equation B(t) = 100(1.1664)'. Assume that n = 2, and rewrite B(t) in ...

A: Answer -

Q: 2) In the absence of any correction for national security and climate change considerations, does th...

A: 2) When there is no correction method available for national security and climate change, the market...

Q: 11. A tariff on imports benefits domestic producers of the imported good because A. They get the tar...

A: Disclaimer :- as you posted multipart questions we are supposed to solve the first 3 questions only ...

Q: Problem (i) Find the equilibrium level of income. (ii) Find the level of consumption. Given the savi...

Q: One part of monetizing the debt is for th central bank to A.conduct an open market purchase B.increa...

A: Central bank in influence the money supply in the economy by using open market operations.

Q: Problem 1. The following specifications are given for an economy: Consumption, C = 250 + 0.75 Yawher...

Q: Suppose Barefeet is a monopolist that produces and sells Ooh boots, an amazingly trendy brand with n...

A: Monopoly maximizes profit by producing at MR=MC and charging the maximum price consumers are willing...

Q: 8:55 PM Assignment Print View c. When the total money supply decreases, there will be an adjustment ...

A: Sff1 - New supply of federal fund. Sff - supply of federal fund

Q: 4 Suppose that a person’s demand curve for physician office visits is P = 200 – 20Q, where P is the ...

Q: The information provided on the "Cruffins" worksheet in the data pack can be used to estimate the nu...

A: We have given the dataset for 20 observation The number of Cruffins sold is a function of price The...

Q: What is the original price of a commodity when price elasticity is 0.71 and demand changes from 20 u...

A: Price elasticity of demand is the responsiveness of quantity demanded to changes in price. It shows ...

Q: Problem Given the following information about the economy of a country. C = 85 + 0.5 Y I = 85 Consum...

A: As given Consumption function is C = 85+ 0.5Yd I = 85 , G = 60 T = 40 + 0.25Y Where Yd is Disposab...

Q: Consumer has utility function In(c1)+beta*In(c2), where beta=1. Interest rate i=0%. (NOTE!) Income y...

A: Utility function : ln(c1) + ln(c2) (As Beta = 1 ) y1 = 10 , y2 = 50 Budget Constraint in peri...

Q: T. G J K 7. GDP The degree of built-in stability in the above economy could be increased by: Governm...

A: Please find the answer below.

Q: In the Heckscher-Ohlin model, modelling supply chains A is impossible. B can invalidate the ...

A: H-O Model of free trade states that as countries advance toward free trade, the prices of the output...

Q: Consider a monopoly market with demand curve Q(P) = $. Suppose that producing a good costs $1 per un...

A: Monopolist will produce the goods where marginal revenue is equal to marginal cost .

Q: Sellers are willing to sell their product at a very low price even it high priced items cost more? W...

A: We know that price of goods and services are determined by the market forces interaction . It is det...

Q: CASH FLOW DIAGRAM Calculate the capitalized cost of a project that has an initial cost of P8,000,000...

A: Solution given below,

Q: Marginal Utility is the additional satisfaction or utility from each extra unit of consumption. Tota...

A: Classical Theory of Demand : Classical theory of demand or Marshallian theory is the first systemati...

Q: 11. A tariff on imports benefits domestic producers of the imported good because A. They get the tar...

A: Economic externalities are the extra costs or benefits that occur to a third party that is not a par...

Q: required in order for a company's project to be successful (for example, each player could be a diff...

A: In the above sequential game let us use backward induction method to get some idea about the game an...

Q: Fill in the table, and use it to answer the following questions. 2015 2016 Quantity of Money €300 €3...

A: Disclaimer :- as you posted Multipart questions we are supposed to solve the first 3 questions only ...

Q: Which of the following are real and which are current? a. Allyson has been promised a $10 000 inheri...

A: Real and current in the above question is put up in the context of price level of the things if adju...

Q: 10. Given that frozen yogurt and ice cream are substitutes, a shift in preferences in favor of yogur...

A: The economic dynamics that decide what providers are willing to create and what buyers are willing a...

Q: explain what socio-economic theory assumes about people’s behavior. What are some of the social cons...

A: The study of the connection or interaction between social behaviour and economics is known as social...

Q: True or False The average total cost cannot equal marginal cost.

A: Average total cost It refers to the total cost per unit of production. ATC = TC/Q where ATC is avera...

Q: MBp=90-0.3Q, MCp=30+0.1Q, marginal profit=60-0.4Q, marginal external cost=0.2Q. Solve for the compet...

A: Competitive market equilibrium is where marginal private benefit equals marginal private costs. An e...

Q: The U.S. economy is experiencing a recession. In order to smooth the economy the Federal Reserve wou...

A: The money supply basically refers to the total quantity of currency and other liquid assets in a co...

Q: Determine which account of the Balance-of-Payments is affected the following transaction: National C...

A: The current account part of balance of payment records transactions of export and import of goods an...

Q: r=0% on deposits. Consumer needs to borrow $50 loan and the consumer has uncertain income of y=50,80...

A: Expected income- it is when there is uncertain of income and there is chances of occuring different ...

Q: Task 3 Direction: Determine the price and quantity equilibrium in the market of the given equation: ...

Q: Suppose there are two power plants that release sulfur dioxide (SO2) into air at their current produ...

A: Introduction Two Power plant has given as MAC1 = 3q1 + 5 MAC2 = 2q2 They both release 150 units of S...

Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

#Q11

If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables
fixed at investment = 250 MD, Government expenditure = 200MJD, Net exports = 200MJD. The
equilibrium income is equal to?
%3D

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Assuming that each of the following functions are linear, give an economic interpretation of the slope ofthe function:a. C(Y) is the national consumption when national income is Yb. S(Y) is the total national savings when national income is Y
Assume consumption is represented by the following function: C=400+0.75Y. Also assume that planned investment (I) equals 100 and there are no government or taxes.
1. If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables fixed at investment = 250 MD Government expenditure = 200MJD, Net exports = 200MJD, so the equilibrium income is equal
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/APS
Assume the following consumption schedule: C=20+0.9Y, where C is consumption and Y is disposable income. The MPC is:
Suppose a closed economy has an aggregate consumption function given by C = 100 + 0.50Yd and generates $2400 output and income in equilibrium. Suppose also that the government spends 400 and imposes a lump-sum tax of 50. What is the level of intended investment? (round your answer to the nearest whole value)
Consider an economy with the following consumption function: C = 400 + 0.60YD, and investment function, I = 600. If the marginal propensity to consume increases by 0.05, what is the increase in equilibrium national income?
If consumption is $8 billion when disposable income is $0, and if the marginal propensity to consume is 0.60, find the national consumption function C(y) (in billions of dollars).
Determine a) the value of GDP and b) the value of the multiplier in a closed economy, if the saving function is S = -20 + 0.2Y, investment is 50, and government expenditures are 40
Suppose that the marginal propensity to save is dS dy = 0.21 (in billions of dollars) and that consumption is $9.8 billion when disposable income is $0. Find the national consumption function.
Suppose autonomous consumption in an economy is $3 trillion, the MPC is 0.8, government spending is $700 billion, investment equals $600 billion, and net exports equal -100 billion. Calculate the equilibrium output value for this economy.
Suppose that the marginal propensity to save is dS dy = 0.93 − ln(y + 1) y + 1 (in billions of dollars) and that consumption is $6.05 billion when disposable income is $0. Find the national consumption function. C(y) =