Given, autonomous consumption Co = a = 4.0, marginal propensity to consume MPC = 0.80, investment I = 8.5, government expenditure G = 9.0, exports X = 1.5, imports %3D M = 0.75, and taxes T = 0 ($, billion): i. What is the level of consumption and saving if income is 10.0? ii. What is the equilibrium output level YE (assume this is real GDP) for the economy?

Refer to the table. Planned Planned Consumption Saving Planned Real GDP Investment $6,000 $1,000 $1,000 $5,000 10,000 0 10,000 14,000 1,000 15,000 18,000 2,000 20,000 22,000 25,000 26,000 30,000 If real Gross Domestic Product (GDP) equals $25,000, what is the average propensity to save? OA. 0.0 OB. 0.88 OC. 0.12 OD. 0.56

Given a consumption function, C = c0 + cY, specified such that the marginal propensity to consume is 75%, what will consumption expenditure be if total income is £538bn? a. £584+ c0 bn b. £403.5 + c0 bnc. £538 + c bnd. £403.5 bn

Taxes are increased in lump sum by 400 for an economy with an MPC of 0.75. What is the change in consumption: Select one: A. 533.33. В. 1200. С. 30. D. 3.

Please no written by hand and no emage Suppose that in the economy under consideration the consumption function can be written as C = 200 + .8(Y – T). Furthermore, you know that taxes are autonomous and equal to $10. Now, suppose that investment spending is equal to $50 at every level of disposable income and government spending is constant and equal to $100 at every level of disposable income, suppose that (X – M) is constant and equal to $20 at every level of disposable income. (a)Draw a graph of the consumption function with respect to disposable income. Measure/show consumption spending on the vertical axis and disposable income on the horizontal axis (b) Calculate equilibrium national income Ye from the information given. (c) From the information given above is the government running a deficit or surplus budget? Explain why. (d) Full employment output in this economy (Yf) is equal to $2000 what do you predict is happening to inventories if the full employment level of output is…

Assume consumption is represented by the following function: C=400+0.75Y. Also assume that planned investment (I) equals 100 and there are no government or taxes.

4. Assume a closed economy in which disposable income starts at 1,000 and increases by 500; consumption starts at 1,100 and increases by 300; investment spending is 1,000 and government spending is 500. The MPC is 0.6, The multiplier is 2.5, and The consumption equation is C = 500 + 0.6DI   Equilibrium GDP is? A 3,500 B 3,000 C 4,000 D 5,000

ADVANCED ANALYSIS  Assume that the consumption schedule for a private closed economy is such that consumption is:   C = 100 + 0.75Y     Assume further that planned investment Ig is independent of the level of real GDP and constant at Ig = 50. Recall also that, in equilibrium, the real output produced (Y) is equal to aggregate expenditures:   Y = C + Ig      Instructions: Enter your answers as whole numbers.a. Calculate the equilibrium level of income or real GDP for this economy.        Equilibrium GDP (Y) = $  . b. What happens to equilibrium GDP if Ig changes to 60?        Equilibrium GDP (Y)  = $  .        What does this outcome reveal about the size of the spending multiplier?        Spending multiplier =  .