Ans) equilibrium income : $ 12,571.43
Aggregate expenditure function is Y = 4,400 + 0.65Y
Y = 12,571.43
The marginal propensity to expend is 65. Autonomous expenditures are $4,400. What is the level of...
The marginal propensity to expend is .6. Autonomous expenditures are $3,600. What is the level of equilibrium income in the economy?
Consider the following table for a? household's consumption expenditures and disposable income. To the nearest? dollar, compute desired saving at each level of disposable income. ?(Enter your responses as whole numbers and include a minus sign where? appropriate.) Income Consumption Savings ?$0 ?$100 ?$ ?$100 ?$150 ?$ ?$200 ?$200 ?$ ?$300 ?$250 ?$ ?$400 ?$300 ?$ ?$500 ?$350 ?$ The marginal propensity to save is ____. ?(Enter your response rounded to two decimal? places.) The marginal propensity to save ____...
In a closed economy where the taxes are autonomous and marginal consumption propensity is X; how much increase on national income does generate an increase of Y billion public expenditures financed by an equal amount of tax increase? (chose a value for x and y and make the calculation)
The following table shows alternative hypothetical economies and the relevant values for the marginal propensity to consume out of disposable income (MPC), the net tax rate (t), and the marginal propensity to import (m). a. Recall that z, the marginal propensity to spend out of national income, is given by the simple expression Z-MPC(1-1)-m. By using this expression, compute z and the simple multiplier for each of the economies and fill in the table. (Round your response to two decimal...
The government spent $ 49 billion for various infrastructure upgrades. If the marginal propensity to consume is 0.74 ?, the marginal propensity to save is ? . ?(Enter your response rounded to two decimal? places.) The increased government spending created ?$ ? billion of additional spending. ?(Enter your response rounded to two decimal? places.)
The table below shows the after-tax income and consumption spending for a nation. a. Calculate the dollar amount of savings, the marginal propensity to consurfe (MPC), and the marginal propensity to save (MPS) for each level of income. Instructions: Enter your answers for savings as a whole number. Round your answers for MPC and MPS to two decimal places. After-Tax Income and Consumption Spending Consumption Spending (dollars) $9,540 After-Tax Income (dollars) $18,700 Savings (dollars) MPC MPS $ 23,640 13,860 19,180...
B,c,d,e please solve Suppose in the economy autonomous consumption - $100, autonomous investmen $120, government purchases G-$400 lump-sum taxes = $70, transfers Tr-$20, exports Er $150 autonomous imports im = $30, marginal propensity to consume mpc = 0.8, proportional income tax rate 1-20%, marginal propensity to invest mpi-0.1, and marginal propensity to imports mpm-0.4 (a) For this economy calculate (i) the amount of autonomous spending: (ii) the value of the spending multiplier; (iii) the equilibrium level of output; (iv) the...
17. Consider the following table showing national income in billions of dollars. Assume that the marginal propensity to import is 15% and the level of exports is $60 billion. a. Calculate the level of net exports for each level of actual income and fill in the table below. (Round your responses to the nearest whole number.) Real GDP (Y) (Billions of S) 200 400 Net Exports (X-IM) (Billions of S) 600 800 1000 b. Now assume that the marginal propensity...
is to Complete the following table which depicts a hypothetical economy in which the marginal propensity to save is constant at all levels of real GDP investment spending is autonomous, and there is no government. Note: Enter whole numbers and use the minus sign where needed. Real GDP Consumption Investment Saving $ - 500 $0 2000 4000 6000 8000 10000 $500 2000 3500 5000 6500 8000 $1500 1500 1500 1500 500 1000 1500 2000 1500 1500 This economy's marginal propensity...
Troll Island is a small island nation that recently experienced an autonomous change in aggregate expenditures (AE). AE increased by 3 billion, and the marginal propensity to consume on Troll Island is equal to 0.65 . What is the change in Troll Island's real GDP after the increase in AE? Enter your answer in billions of dollars, rounded to one place after the decimal. For example, an answer of $2,500,000 should be entered as 2.5.