Answered: Autonomous Consumption R535m Marginal…

Autonomous Consumption R535m Marginal propensity to consume is 0.75 Investment Spending R322m Government Spending R300m Imports R175m + 0.08Y Exports R283m Taxes = 0.1Y

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Autonomous Consumption R535m
Marginal propensity to consume is 0.75
Investment Spending R322m
Government Spending R300m
Imports R175m + 0.08Y
Exports R283m
Taxes = 0.1Y
Full employment level of output is R3 483m

Calculate the value of induced imports in this
economy, given the equilibrium level of output.

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