Consumption function: C=90+0.75Yd.   Investment function: I=75.   Government spending: G=100.   Net export: NX=50.   Net taxes: T=50.   Disposable income: YdY-T.   Equilibrium: Y=C+I+G+NX.   a. Solve for equilibrium income. Show your work below.   b. If autonomous investment decreases by 60, what is the new level of income? Show your answer on the same graph. Show your work below.   c. What is the value of the spending multiplier? Show your work below

Now assume you are examining a new economy. You learn that the mpc of this new economy is 0.75 and that the government wants to increase the level of output by $3000. What change in G achieves this desired change in Y? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $750 b $1500 $3000 d $12000

1. Consumption = 13,309 Exports = 2,316 Government purchases = 3,331 Saving = 6,607 Government budget deficit = 4,000 Imports = 2.883 %3D a. What is gross domestic product? GDP = b. What is investment? c. What is disposable income? Yd =. d. What is the level of government transfers minus taxes?

The following table shows data for the economy before the decrease in saving. Suppose that the decrease in saving causes consumption to rise from $280 million to $320 million. Assume Say's law holds in this economy. Fill in the data for the economy after the decrease in saving.   Before Saving Decrease After Saving Decrease Consumption (C) $280 million $320 million Investment (I) $200 million $    million Government Purchases (G) $250 million $    million Exports (EX) $500 million $500 million Imports (IM) $300 million $300 million   As a result of the decrease in saving, total expenditures will    .

Aggregate Expenditures and Multipliers Assignment a. Using the aggregate expenditure function above, what is the current level of real GDP? b. Using the aggregate expenditure function above, what would be the level of real GDP if the aggregate expenditure function shifted up by $0.2T? c. If Investment expenditures increase by $300B and MPC is equal to 0.90, what will be the increase in real GDP? d. If Government expenditures increase by $800B and MPS is equal to 0.05, what will be the increase in real GDP?

The following questions refer to this table:

Answer the following questions: Instructions: Enter your answers rounded to the nearest whole number. a. By how much will GDP change if firms increase their investment by $12 billion and the MPC is 0.80? billion b. If the MPC is 0.50? %24 billion

From the graph , calculate the MPS for the saving function.

Refer to the figure at right. The equilibrium level of real GDP will occur   A. at point A.   B. to the left of point A.   C. to the right of point A.   D. at the undetermined point on the graph depending upon the level of investment.

Q6