Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 11, Problem 16E
To determine
To compute:
The value for equilibrium level of real
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You are given the following information about a closed economy with no government:
Consumption = 115 + 0.6Y
Investment = 550
Calculate the equilibrium level of income.
Is the equilibrium level of income also the full employment level of income? Explain your answer.
Suppose that consumption is 70 million and disposable income is 350 and that the economy is experiencing a recessionary gap of 66 million. If the government spent 2 million and taxes were cut by 5 million, what happens to the GDP gap?
Good day . can you please assist on the following question below
Multiple-choice questions: Select one correct answer for each of the following.
Q.1.1 Which of the following represent injections into the circular flow of income and spending?(a) Exports and investment;(b) Government spending and imports;(c) Government spending and saving;(d) Imports and saving.
Q.1.2 In the circular-flow diagram, the goods markets are where: (a) The households purchase goods from firms;(b) Firms purchase goods from government;(c) Firms purchase goods from households;(d) The government purchases goods from households.
Q.1.3 Money overcomes the problem of a double coincidence of wants inherent in the barter system through its function as a:(a) unit of account.(b) store of value.(c) medium of exchange.(d) standard of deferred payment.
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