BuyFindarrow_forward

Economics:

10th Edition
BOYES + 1 other
ISBN: 9781285859460

Solutions

Chapter
Section
BuyFindarrow_forward

Economics:

10th Edition
BOYES + 1 other
ISBN: 9781285859460
Textbook Problem

Use the information in the following table to do exercises 8-15:

What are the equations for the consumption, net exports, and aggregate expenditures functions?

To determine

Use the information in the following table:

What are the equations for the consumption, net exports and aggregate expenditures functions?

Explanation

Given the data as follows

Consumption function is calculated as

  C=Ca+cY

We have Y=500, C=480 and MPC=0.9

Substituting the values in above formula, we get

  480=Ca+(0.9×500)

  480=Ca+450

  Ca=480450

  Ca=30

Autonomous consumption is constant at every level of income.

Thus, consumption function is given as

  C=30+0

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Differentiate between FOB origin and FOB destination pricing.

Foundations of Business (MindTap Course List)

What is the purpose of a range check?

Accounting Information Systems

What is interperiod tax allocation?

Intermediate Accounting: Reporting And Analysis

Why must employers maintain employees individual earnings records?

College Accounting (Book Only): A Career Approach

ADJUSTING COST OF CAPITAL FOR RISK Ziege Systems is considering the following independent projects for the comi...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)