Suppose that C = a + bY, where C = consumption, a = consumption at zero income, b = slope, and Y = income.a. Are C and Y positively related or are they negatively related?b. If graphed, would the curve for this equation slope upward or slope downward?c. Are the variables C and Y inversely related or directly related?d. What is the value of C if a = 10, b = .50, and Y = 200?e . What is the value of Y if C = 100, a = 10, and b = .25?

Suppose that C = a + bY, where C = consumption, a = consumption at zero income, b = slope, and Y = income.a. Are C and Y positively related or are they negatively related?b. If graphed, would the curve for this equation slope upward or slope downward?c. Are the variables C and Y inversely related or directly related?d. What is the value of C if a = 10, b = .50, and Y = 200?e . What is the value of Y if C = 100, a = 10, and b = .25?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 1.3P

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