S assume that in the model of national economy household consumption is C= 300 + 0.9*DI, companies' gross estment is Ig = 200, but government expenses are G= 250, while the sum of taxes collected by the government is - 150. Taking into account that disposable income DI = Y-T, calculate: a) Equilibrium level of income Y; b) Calculate the value of Marginal propensity to consume and value of Marginal propensity to save; c) Private consumption at macroeconomic equilibrium; d) Develop equation of saving and calculate amount of saving at the point of equilibrium level of income. %3D
S assume that in the model of national economy household consumption is C= 300 + 0.9*DI, companies' gross estment is Ig = 200, but government expenses are G= 250, while the sum of taxes collected by the government is - 150. Taking into account that disposable income DI = Y-T, calculate: a) Equilibrium level of income Y; b) Calculate the value of Marginal propensity to consume and value of Marginal propensity to save; c) Private consumption at macroeconomic equilibrium; d) Develop equation of saving and calculate amount of saving at the point of equilibrium level of income. %3D
Chapter18: The Keynesian Model
Section: Chapter Questions
Problem 9SQP
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![Ts assume that in the model of national economy household consumption is C = 300 + 0.9*DI, companies' gross
vestment is Ig = 200, but government expenses are G = 250, while the sum of taxes collected by the government iS
-150. Taking into account that disposable income DI =Y-T, calculate:
a) Equilibrium level of income Y;
b) Calculate the value of Marginal propensity to consume and value of Marginal propensity to save;
c) Private consumption at macroeconomic equilibrium%3;
d) Develop equation of saving and calculate amount of saving at the point of equilibrium level of income.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F23cc99e5-6877-4ca4-9e5d-b26ee05251a5%2F0b0622f2-1229-420c-9c6b-12ef206ffd2f%2F6j5edph_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ts assume that in the model of national economy household consumption is C = 300 + 0.9*DI, companies' gross
vestment is Ig = 200, but government expenses are G = 250, while the sum of taxes collected by the government iS
-150. Taking into account that disposable income DI =Y-T, calculate:
a) Equilibrium level of income Y;
b) Calculate the value of Marginal propensity to consume and value of Marginal propensity to save;
c) Private consumption at macroeconomic equilibrium%3;
d) Develop equation of saving and calculate amount of saving at the point of equilibrium level of income.
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