Ekonomics Assume that marginal propensity to consume is 0.75. autonomous consumption is 100 units(consumption function therefore is as follows: C=100+0.75 Y). Calculatea)Multiplierb)Equilibrium output if Y=100c)How much does equilibrium output change if autonomous consumption increases by 50 to 150 units(Hint:use multiplier)

MPC=0.75Autonomous consumption =100unitsConsumption function (C)=100+0.75Y Find: a) Multiplier b)…

Assume that marginal propensity to consume is 0.75. autonomous consumption is 100 units(consumption function therefore is as follows: C=100+0.75 Y) . Calculate =)Multiplier b)Equilibrium output if Y=100 c)How much does equilibrium output change if autonomous consumption increases by 50 to 150 units(Hint:use multiplier)

Assume that marginal propensity to consume is 0.75. autonomous consumption is 100 units(consumption function therefore is as follows: C=100+0.75 Y) . Calculate =)Multiplier b)Equilibrium output if Y=100 c)How much does equilibrium output change if autonomous consumption increases by 50 to 150 units(Hint:use multiplier)

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 11E

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