"Your research into a nation has yielded the following information: Autonomous expenditure (A) = $300 Gross Investment (1) = $200 Government purchases (G)= $300 Net exports (NX) = $225 Taxes (T)-$300 MPC=0.75 Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Substitute the values above into the equation: AE = A[MPC (Y-T)]+I+G-NX to determine the abbreviated equation for aggregate expenditures (AE) AE- X b. Knowing that AE - Y at the equilibrium level of output, what is the equilibrium level of output for this nation? Ye

"Your research into a nation has yielded the following information: Autonomous expenditure (A) = $300 Gross Investment (1) = $200 Government purchases (G)= $300 Net exports (NX) = $225 Taxes (T)-$300 MPC=0.75 Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Substitute the values above into the equation: AE = A[MPC (Y-T)]+I+G-NX to determine the abbreviated equation for aggregate expenditures (AE) AE- X b. Knowing that AE - Y at the equilibrium level of output, what is the equilibrium level of output for this nation? Ye

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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