MyLab Economics with Pearson eText -- Access Card -- for Foundations of Economics
8th Edition
ISBN: 9780134518312
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 30, Problem 2IAPA
To determine
To calculate:
The amount of saving at each level of disposable income, the range of disposable income does consumption expenditure exceeds disposable income and the level of autonomous consumption expenditure.
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Use the data provided in the consumption schedule below for the nation of Nevets to answer the following questions.
Disposable income
(Billions of 2012 dollars)
Consumption Expenditure
(billions of 2012 dollars)
0
90
100
160
200
230
300
300
400
370
500
420
Which of the following is a CORRECT statement? Explain why.1. There are dis-savings at income levels of 400 and 500 billion dollars.2. The break-even level of income is 400 billion dollars.
3. Savings of 30 billion occurs at an income level of 200 billion dollars
The table below provides income and consumption data in billions of dollars:
Disposable Income
Consumption
Savings
100
80
---
200
150
---
What is the level of consumption when income is $300 billion?
A) $200 billion
B) $240 billion
C) $210 billion
D) $60 billion
Question 1:
In an economy C = 350 + 0.75 Y is the consumption function where C is consumption expenditure and Y is national income. Investment expenditure is 4,000.
a) Calculate equilibrium level of income.
b) Calculate consumption expenditure.
Chapter 30 Solutions
MyLab Economics with Pearson eText -- Access Card -- for Foundations of Economics
Ch. 30 - Prob. 1SPPACh. 30 - Prob. 2SPPACh. 30 - Prob. 3SPPACh. 30 - Prob. 4SPPACh. 30 - Prob. 5SPPACh. 30 - Prob. 6SPPACh. 30 - Prob. 7SPPACh. 30 - Prob. 8SPPACh. 30 - Prob. 9SPPACh. 30 - Prob. 1IAPA
Ch. 30 - Prob. 2IAPACh. 30 - Prob. 3IAPACh. 30 - Prob. 4IAPACh. 30 - Prob. 5IAPACh. 30 - Prob. 6IAPACh. 30 - Prob. 7IAPACh. 30 - Prob. 8IAPACh. 30 - Prob. 9IAPACh. 30 - Prob. 10IAPACh. 30 - Prob. 1MCQCh. 30 - Prob. 2MCQCh. 30 - Prob. 3MCQCh. 30 - Prob. 4MCQCh. 30 - Prob. 5MCQCh. 30 - Prob. 6MCQCh. 30 - Prob. 7MCQCh. 30 - Prob. 8MCQ
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Similar questions
- In an economy S = -60 + 0.2Y and the invesment is 5000 calculate the 1)Equilibrium level of the income 2)Consumption expenditure at equilibriumarrow_forwardThe table below provides Income and consumption Data in billions of dollars. Answer questions below based on it.Disposable Consumption SavingsIncome100 80 --------200 150 --------- What is the level of consumption when income is $300 billion? Group of answer choices $200 billion $240 billion $210 billion $60 billionarrow_forwardAn economy is described by the following equations: C= 2,000 + 0.75 (Y – T) Ip= 900 G= 2,000 NX= 200 T= 2,000 Y*= 15,000 What is the Autonomous expenditure in the economy?arrow_forward
- 3. If taxes increase, then: a. disposable income decreases b. disposable income increases c. consumption increases d. private savings increasearrow_forwarda. Fill in the missing numbers in the table. b. What is the break-even level of income in the table? What is the term that economist use for the saving situation shown at the $240 level income? c. For each of the following items, indicate whether the value in the table is either constant or variable as income changes: the MPS, the APC, the MPC, the APS. Level of Output and Income (GDP=DI) Consumption Savings APC APS MPC MPS $240 $ $-4 $260 $0 $280 $4 $300 $8 $320 $12 $340 $16 $360 $20 $380 $24 $400 $28arrow_forwardQuestion 4 : Refer to the information provided in table below to answer the questions that follow. Y C S 0 100 180 190 a. Find the consumption, if the consumption function is: C= 120 +0.2Y. b. Find aggregate saving. c. Illustrate that by graph from the information provided in table.arrow_forward
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