3. Consider the following consumption function: C = 200+ 0.75(Y). Here C is consumption, autonomous spending is 200, the MPC is 0.75, and disposable income is Y-T=YD. a. Construct a Keynesian Cross Diagram, graphing the consumption function. b. Determine and graph the level of equilibrium income. c. What happens if autonomous spending increases to 300? Show on your graph and solve for the new equilibrium income.

5. Graphing the saving and consumption functions from MPC Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.5. That is, if disposable income increases by $1, consumption increases by 50¢. Suppose further that last year, disposable income in the economy was $300 billion and consumption was $250 billion. Based on these data, use the blue line (circle symbols) to plot this economy's consumption function on the following graph. REAL CONSUMER SPENDING (Billions of dollars) 700 600 500 400 300 200 100 0 Aa Aa -100 Consumption Fn. O O 0 100 200 300 400 500 600 700 800 REAL DISPOSABLE INCOME (Billions of dollars) Help Clear All Suppose that this year, disposable income is projected to be $340 billion. Based on your analysis, you would expect consumption to be and saving to be

If a 2​-percent increase in the price of corn flakes causes a 10​-percent decline in the quantity​ demanded, what is the elasticity of​ demand?

In the Keynesian cross model, assume that the consumption function is given by C = 20 + 0.8(Y- T). Planned investment is 200; government purchases and taxes are both 400. There is no foreign trade. An economist has claimed that the full employment level of output is 2,400. How much should the government expenditure or taxes rise or fall to achieve full employment?

Need help with this. Thanks!  Just for information the point can move left and right and the line can move up and down. When line moves up the point can move to the left only and when the line moves down, the point can move to the right only. I hope that makes sense to you.

Stiller 1. Suppose an economy is represented by the following equations. Consumption function C = 100 + 0.8Yd Planned investment I = 38 Government spending G = 75 Exports EX = 25 Imports IM= 0.05Yd Autonomous Taxes T = 40 Planned aggregate expenditure AE = C + I + G + (EX - IM) a. By using the above information calculate the equilibrium level of income for this economy, b. Calculate the value of expenditure multiplier. c. Suppose that government spending is increased by 5, what will happen to the equilibrium income level?

In the following table, you are given the following parameters for the economy of Atris: C = 100 + 0.85Y I = 300 G = 150 X = 60 IM = 10 + 0.05Y a) What is the value of expenditures equilibrium? b) What is the value of total leakages and injections at expenditures equilibrium? c) Suppose autonomous expenditure increases by $25. What is the new value of expenditure equilibrium?

Complete the statements and then calculate the change in consumption. The consumption function shows the relationship between consumption spending and The slope of the consumption function is the Changes in consumption can be predicted by multiplying the change in by the If the MPC = 0.80 and disposable income increases by $1000, then consumption will increase by what amount? Assume that there is no multiplier effect.

Consider two closed economies that are identical except for their marginal propensity to consume (MPC). Each economy is currently in equilibrium with real GDP and total expenditure equal to $100 billion, as shown by the black points on the following two graphs. Neither economy has taxes that change with income. The grey lines show the 45-degree line on each graph. The first economy's MPC is 0.5. Therefore, its initial total expenditure line has a slope of 0.5 and passes through the point (100, 100). The second economy's MPC is 0.70. Therefore, its initial total expenditure line has a slope of 0.70 and passes through the point (100, 100). Now, suppose there is an increase of $30 billion in investment in each economy.   Place a green line (triangle symbol) on each of the previous graphs to indicate the new total expenditure line for each economy. Then place a black point (plus symbol) on each graph showing the new level of equilibrium output.

Given the information below, answer the questions that follow. C = $40 + 0.75Y             I = $30             G = $40               X – M = $10   a) What is the equilibrium GDP?  Explain why $550 is not the equilibrium. b) What is the marginal propensity to consume (MPC) in this question? (Explain) c) What is the multiplier in this question and explain the significance of the multiplier?