Assume a closed economy in which, there is no government. If autonomous consumption is80, autonomous investment is 70, and marginal propensity to save is 0.25 in this economy.Then calculate the amount of equilibrium output (income)?
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Assume a closed economy in which, there is no government. If autonomous consumption is
80, autonomous investment is 70, and marginal propensity to save is 0.25 in this economy.
Then calculate the amount of equilibrium output (income)?
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- Consider an economy described by the following:Autonomous consumption ( a ) = 100Autonomous Investment = 100Marginal propensity to consume = 0.75 What is the savings function for this economy?Consider an economy that is described by the following: Autonomous consumption = 100 Autonomous investment = 100 Marginal propensity to consume = 0.75 a. What is the consumption function of this economy? b. Derive the equilibrium income of this economy? c. How large is the change in the equilibrium income if investment rises to 200?Suppose the marginal propensity to consume in an economy is 0.9. What would be the Keynesian multiplier in this economy? (Express your answer as a whole number - no fractions or decimals)
- If planned investment (I) goes up by 20 initially and is sustained at this higher level, an increase of output of 20 will not restore equilibrium. Explain why?If C = 12 + 4/5Y, I = 20, what is the values the marginal propensity to save? What is equilibrium level of Y? Show that in equilibrium S = I.Suppose a closed economy with no government spending or taxing is capable of producing an output of $1600 at full employment. Suppose also that autonomous consumption is $120, intended investment is $160, and the mpc is 0.50. What is the value of output (Y) in equilibrium?
- Consider an economy described by the following:Autonomous consumption ( a ) = 100Autonomous Investment = 100Marginal propensity to consume = 0.75 2. What is the consumption function for this economy?The following are exogenous (not directly affected by income): G = 9 I = 14 X = M = 0 The consumption function is: C = k + cY, where k = 8, c = 0.6 at the point where this economy is in equilibrium what is the total level of withdrawals? Give the number to ONE decimal place.Consider a closed economy model where Y=C+l+G, consumption is given by the function C=100+0.9(Y-T), investment is l=100, government purchases are G=70, and the government's budget is balanced. Which of the following is false? | Group of answer choices A) Equilibrium disposable income is 2000. B) Equilibrium GDP is 2070. C) Autonomous spending is 210. D) The multiplier is 10.
- Assume a closed economy in which, there is no government. If ouput (income) is 800,autonomous consumption is 100, and marginal propensity to consume is 0.70 in this economy.Then calculate the the amount of consumption spending?You are given the following information about a closed economy with no government:Consumption = 445 + 0.75Y Investment = 250 Calculate the equilibrium level of income.Consider a frugal closed economy without money market. Assume there is no government or exports/imports. The economy is described by the following set of equations. C =1000+0.5⋅Y ID = 600 1. What is the marginal propensity to save of this economy? a) 0.4 b) 0.5 c) 0.1 d) 0.3 e) 0.2 Currently, the economy is saving a half of the amount it consumes. The level of unplanned inventory change is [0, 600, 200, 1400 , 2000 ] and the economy is [equilllibrium or not at equillibrium,]