You are given the following data concerning Freedonia, a legendary country:

Question

Question

You are given the following data concerning Freedonia, a legendary country:

- Consumption function: C=100+0.90 Y

- Investment function: I=300

- Aggregate expenditure function: AE=C+I

- Equilibrium: A E=Y

The MPC in Freedonia is _______ . (Round your response to two decimal places.)

The MPS in Freedonia is _______ . (Round your response to two decimal places.)

The level of equilibrium income, Y, is $ _______ . (Enter your response as an integer.)

The value of the investment multiplier is _______ . (Round your response to two decimal places.)

Suppose the level of investment increases by $15

The change in the level of equilibrium income if investment increases by $ 15 is $ _______ . (Round your response to two decimal places.)

business economics

Add a comment Improve this question Transcribed image text

Answer 1

✔ Recommended Answer

Answer #1

AUSWER consumption function! Co loot 0907 Investment function! I- 300 Aggregate Expenditure function! AE- CHI Equilibrum! AFY Truestment Multiplier = I-MPC MPCF 0.90 -0.9 6% toplo Investmeat Multiplier 10000 The value of Innentment Hultiplier is 11o.n

Add a comment

Answer 2

Similar Homework Help Questions

You are given the following data concerning Freedonia, a legendary country: Consumption Function: Investment: C 200...

You are given the following data concerning Freedonia, a legendary country: Consumption Function: Investment: C 200 0.9Y 300 Aggregate Expenditure Function: Equilibrium: АЕ 3D С +1 AE Y Calculate the following: a. The level of equilibrium income, Y = (Enter your response as an integer.) b. The value of the investment multiplier (Enter your response rounded to one decimal place.) c. The change in the level of equilibrium income if investment increases by 10. AY= (Enter your response as an...
YU core: UOL i pi ext Problem 4.5a Question Help You are given the following data...

YU core: UOL i pi ext Problem 4.5a Question Help You are given the following data concerning Freedonia, a legendary country: . Consumption function: C = 100+ 0.80Y • Investment function: I = 300 Aggregate expenditure function: AE = C + Equilibrium: AE = Y The MPC in Freedonia is 0.8. (Round your response to two decimal places.) The MPS in Freedonia is 0.2. (Round your response to two decimal places.) The level of equilibrium income, Y, is $ 2000....
Income Determination 2,000 You are given the following data concerning Freedonia, a legendary country: • Consumption...

Income Determination 2,000 You are given the following data concerning Freedonia, a legendary country: • Consumption function: C=150 +0.75Y • Investment function: I = 150 • Aggregate expenditure function: AEC +1 • Equilibrium: AE = Y Graph the following: 1.) Using the line drawing tool draw the consumption function. Label your line 'C 2.) Using the line drawing tool, draw the aggregate expenditure function Label your line 'AE 3.) Using the point drawing tool, Identify the equilibrium level of income....

2. Consider the following data table for a hypothetical economy. Aggregate Consumption Personal &n

2. Consider the following data table for a hypothetical economy. Aggregate Consumption Personal Planned Aggregate Aggregate Income Expenditure Saving Investment Expenditure Equilibrium 0 100 20 100 180 200 260 300 340 400 420 500 500 600 580 700 660 Complete the table Calculate and interpret MPC and MPS Write the equation of Consumption Function Determine the equilibrium level of Aggregate Income, Consumption Expenditure, and Personal Saving Calculate the Multiplier Calculate the change...
1. Refer the table below and answer the questions that follow. (4 Points) Aggregate Aggregate Aggregate...

1. Refer the table below and answer the questions that follow. (4 Points) Aggregate Aggregate Aggregate Planned Output Consumption Saving Investment ($ million) Y ($ million) ($ million) ($ million) Aggregate Expenditure AE=C+ 1,500 700 2,000 2,400 2,800 1,800 700 2,100 700 3,200 2,400 700 3,600 2,700 700 a. Fill in the table and find the equilibrium income. b. Find the MPC, MPS and the multiplier. c. If the planned investment increases by $100 million find the new equilibrium level...
Consider the following information on aggregate income, consumption expenditure, and planned investment for a country: nu,...

Consider the following information on aggregate income, consumption expenditure, and planned investment for a country: nu, no Aggregate Output/income $1,800 2,000 2200 2,400 2,600 2.800 3,000 3.200 Consumption $1,800 1,950 2,100 2.250 2.400 2.550 2,700 2.850 Planned Investment $200 200 200 200 200 200 200 nud indo jes, ced roduc When aggregate income is $3,000, O A. saving is $40 and unplanned investment (inventory change) is $100. OB. saving is $300 and unplanned investment (inventory change) is $100. OC. saving...

Economics 212: Principles of Macroeconomica Chapter 23 Problems ou are given the following data f...

Economics 212: Principles of Macroeconomica Chapter 23 Problems ou are given the following data for Freedonia: C 200 + 0.8Y 1 = 100 AE-Y (a) What is the marginal propensity to consume in Freedonia, and what is the marginal propensity to save? (b) Graph equations (3) and (4) and solve for equilibrium income. (c) Suppose investment rises to I'- 110. What is the new equilibrium level of income? What is the value of the investment multiplier? (d) Calculate the savings...
Income Or Output Y Consumption Expenditure C Investment Expenditure I Government Expenditure G...

Income Or Output Y Consumption Expenditure C Investment Expenditure I Government Expenditure G Net export Expenditure NX $4,000 3,925 100 100 25 4,100 4,000 100 100 25 4,200 4,075 100 100 25 4,300 4,150 100 100 25 4,400 4,225 100 100 25 4,500 4,300 100 100 25 4,600 4,375 100 100 25 4,700 4,450 100 100 25 4,800 4,525 100 100 25 4,900 4,600 100 100 25 5,000 4,675 100 100 25 a) Determine equilibrium level...
Income (Yd) Consumption Expenditure Saving Investment Expenditure Government Expenditure Net Export Expenditure Aggregate Expenditure $8000...

Income (Yd) Consumption Expenditure Saving Investment Expenditure Government Expenditure Net Export Expenditure Aggregate Expenditure $8000 $11,000 $2,500 $5,000 $12,500 12,000 14,000 2,500 5,000 12,500 20,000 20,000 2,500 5,000 12,500 30,000 27,500 2,500 5,000 12,500 50,000 42,500 2,500 5,000 12,500 100,000 80,000 2,500 5,000 12,500 Calculate savings, MPC, MPS, break even income, and the equilibrium level of income (Y = AE = C + I + G +NX) in the above given information. Draw a graph showing disposable income (Yd)...

You are given the following data concerning Freedonia, a legendary country:

Homework Answers

Add Answer to:
You are given the following data concerning Freedonia, a legendary country:

Post as a guest

Earn Coins