Assume a closed economy with a GDP (Y) of 6,000. Consumption (C) is given by the equation C = 600+ 0.6(Y-T). Investment (I) is given by the equation I = 2,000- 100i, where i is the nominal rate of interest (in percent). Taxes (T) are 500 and government spending (G) is also 500. (a) What is the autonomous consumption? (b) What is the autonomous spending? (c) What is the marginal propensity to consume? (d) Graph the Aggregate Demand. (e) What is the equilibrium value of i? (f) What is the equilibrium value of C?

Assume a closed economy with a GDP (Y) of 6,000. Consumption (C) is given by the equation C = 600+ 0.6(Y-T). Investment (I) is given by the equation I = 2,000- 100i, where i is the nominal rate of interest (in percent). Taxes (T) are 500 and government spending (G) is also 500. (a) What is the autonomous consumption? (b) What is the autonomous spending? (c) What is the marginal propensity to consume? (d) Graph the Aggregate Demand. (e) What is the equilibrium value of i? (f) What is the equilibrium value of C?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

LIVING IN SPAINJackie moved to Spain to work for a public relations firm. She had health insurance from herprevious employer, but she was surprised to learn that her new employer in Spain did notoffer healthcare coverage. When she asked about this, she was told that more than 90percent of Spaniards use the public healthcare system, which was mostly free. However,her new employer did provide supplementary private health insurance that would allow herto receive quicker care from a private hospital if she desired.Jackie learned that she would be paying 4.7 percent of her salary and her employerwould pay 23.6 percent of her salary to the government for health insurance. She was given a Tarjeta Sanitaria Individual health card to prove that she had health insurance. With this,she could get free care at public hospitals and doctors’ offices. However, before seeing adoctor, she would need to register with a local primary care physician and decide whethershe would use public or private…
A significantly larger proportion of higher social class children attend college than lower-class children. This islargely due to differences in ability among social classes. T or F?
If surgeons really have the ability to increase thedemand for surgeries, which kinds of surgerieswill be most affected? Can you think of a way todetermine which surgeries are unnecessary? Provide several examples from your own readings orexperience.
Pls help with below homework. Why do social workers care about stringency of eligability? What sorts of things does stringency of eligibility refer to?
Fill in the blanks In the following table: Mangiral Manginal Net Benefit 17 To tal a Total Cost Benelit eost Berebit XX xX 200 170 30 200 100 230 2. 270 50 3. 4 450 65 4.
5
SLO-4.1. The amount of money people have to spend after buying necessities such as food, clothing and housing is Osavings Odiscretionary income Onet income Ogross income
A4
DRAW AND EXPLAIN THE MORTALITY GRAPH-
How pandemic COVID 19 affected the global chain ?
Quantitative Analysis What are the trade-offs when chossing the size of a test ?