ECO 2302 PRIN MACO W/MYECO ACC >IP<
4th Edition
ISBN: 9781323504161
Author: CASE
Publisher: PEARSON C
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Question
Chapter 8, Problem 4.3P
Subpart (a):
To determine
Aggregate saving, unplanned investment.
Subpart (b):
To determine
MPC, MPS and Multiplier.
Subpart (c):
To determine
Aggregate saving, unplanned investment.
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table below shows levels of employment, output, consumption, and saving for a private closed economy.
Possible Levels of Employment, Millions
Real Domestic Output,Billions
Consumption,Billions
Saving,Billions
40
$ 240
$ 244
-$ 4
45
260
260
0
50
280
276
4
55
300
292
8
60
320
308
12
65
340
324
16
70
360
340
20
75
380
356
24
80
400
372
28
Instructions: Enter your answers as a whole number.
Using the consumption and saving data above and assuming planned investment is $16 billion, answer the following questions:
a. What are saving and planned investment at the $380 billion level of domestic output?
Investment = $ billion
Calculate the following
Consumption = ?
Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is
$0.2 trillion.
Suppose that GDP is $8 billion, taxes are $1.5 billion, private saving is $0.5 billion, andpublic saving is 0.2 billion. Assuming the economy is closed, calculate the size of:Consumption and Investment
Chapter 8 Solutions
ECO 2302 PRIN MACO W/MYECO ACC >IP<
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