The marginal propensity to expend is .6. Autonomous expenditures are $3,600. What is the level of equilibrium income in the economy?
At equilibrium, Y = 3600 + 0.6Y
0.4Y = 3600
Y= 9000
Equilibrium level of income in this economy is 9000
The marginal propensity to expend is .6. Autonomous expenditures are $3,600. What is the level of...
The marginal propensity to expend is 65. Autonomous expenditures are $4,400. What is the level of equilibrium income in the economy? Instructions: Round intermediate calculations to two decimal places. Enter your response rounded to the nearest dollar amount Equilibrium income is $ .
The slope of the expenditures curve is: B. equal to the marginal propensity to expend. C. greater than the marginal propensity to expend D. not related to the marginal propensity to expend.
Here are some facts about the economy of Inferior. Marginal propensity to consume 3/5 marginal propensity to import 0 autonomous consumption 4 exports 0 private investment 20 income tax rate 0 government expenditures 0 Income consumption investment government aggregate expenditures expenditures 0 10 20 30 40 50 60 70 80 90 What is equilibrium GDP?
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)
Here are some facts about the economy of Inferior. Marginal propensity to consume 3/5 marginal propensity to import 0 autonomous consumption 4 exports 0 private investment 20 income tax rate 0 government expenditures 0 Income consumption investment government aggregate expenditures expenditures 0 10 20 30 40 50 60 70 80 90 How much is consumption when income equals 10
How much is the multiplier?. Here are some facts about the economy of Inferior. Marginal propensity to consume 3/5 marginal propensity to import 0 autonomous consumption 4 exports 0 private investment 20 income tax rate 0 government expenditures 0 Income consumption investment government aggregate expenditures expenditures 0 10 20 30 40 50 60 70 80 90
51. As the marginal propensity to expend rises, the multiplier: decreases. is impossible to determine. increases. remains constant. 54. Suppose the economy is initially in equilibrium, but then exports fall relative to imports. Based on the Multiplier Model, and assuming no other changes occur: equilibrium will still exist. a shortage will develop. a surplus will develop. withdrawals from the spending stream will be less than injections. 55. According to Classical economists of the 1930's, an excess supply of labor will...
What is meant by the term the marginal leakage rate? a Total leakages as a fraction of aggregate expenditures. b Total leakages as a fraction of the level of income. c The ratio of change in income that results from a change in leakages. d The ratio of change in leakages that results from a change in income. What is the value of the MPE if MPC = 0.63; MPM = 0.1 a 0.053 b 0.53 c 0.73 d 0.83...
Z. Given the following data representing the goods market in an open economy Marginal propensity to consume 0.5 300 Direct tax rate Autonomous Taxation Transfers 0.1 100 200 10000 Gov spending 2000 0.2 50 6000 investment Marrinal propensity to import Autonomous imports Exports Using the Keynesian cross-model, compute a) The equilibrium level of the aggregate output The value of public savings corresponding to the equilibrium level of the output; say if the country is running a budget deficit or surplus...
2. Given the following data representing the goods market in an open economy Marginal propensity to consume Autonomous consumption Direct tax rate Autonomous Taxation Transfers Gov spending 0.5 300 0.1 100 200 Investment Mareinal propensity to import Autonomous imports Exports 10000 2000 0.2 50 6000 uning the Keymnesan cross model compute a) The equilibrium level of the aggregate output b) The value of public savings corresponding to the equilbrium level of the output; say if the country is running a...