MACROECONOMICS >C< W/MYECONLAB
18th Edition
ISBN: 9781323886038
Author: Pearson
Publisher: Pearson Custom Publishing
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Question
Chapter 21, Problem 4.2P
To determine
The best fits values in the given consumption functions.
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Students have asked these similar questions
Calculate the missing values in the table below given that the Aggregate Consumption Function for a
country is equal toC= 150 + 0.75Y and planned investment is fixed at 300.
Aggregate
Output
(Income) (Y)
Aggregate
Consumption Investment
(C)
Unplanned
Inventory
Change (Y-AE)
Planned
Planned Aggregate
Expenditure (AE)
Equilibrium?
(1)
1,500
300
1,800
300
2,100
300
2,400
300
2,700
300
What is likely to happen to aggregate output if the economy produces above the equilibrium
level? How much is aggregate saving at the equilibrium level?
Calculate the multiplier.
Calculate the new equilibrium if Planned Investment increased by $50M.
Consider an economy that is characterized by the following equations:
C= 400 + 0.5 Yd
I = 700 - 4000i + 0.1y
G= 200
T= 200
(M/P)d
- = 0.75Y - 7500€
(MP)== 600
What is the equilibrium consumption (C)?
Consider an economy that is characterized by the following equations:
C= 400 + 0.5 Yd
I = 700 - 4000i + 0.1Y
G= 200
T= 200
(MP)d = 0.75Y - 7500;
(M/P)S = 600
What is the equilibrium investment (I)?
Chapter 21 Solutions
MACROECONOMICS >C< W/MYECONLAB
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