Question 5/ 25 If government spending decreased by $500. Given that c= 100+0.75y and the initial income is $5000, the new equilibrium income is: 1. OS7000 2. Os1600 3. O$3000 4. Os6600

I don't understand this question

3. Complete the accompanying table. (a) What is the break-even level of income? How is it possible for households to dissave at very low income levels? Level of output and income (GDP = DI) Consumption Saving АРС APS MPC MPS $205 2$ -$5 230 255 5 280 10 305 15 330 20 355 25 380 30 405 35

1. Calculate the value of the multiplier  2. Calculate the equilibrium leve of income

Y                   C                    I                    G                      X                             $ 100               $ 120               $ 20                 $ 30                $ 10                             $ 300               $ 300               $ 20                 $ 30              - $ 10                             $ 500               $ 480               $ 20                 $ 30              - $ 30                             $ 700               $ 660               $ 20                 $ 30              - $ 50 a.What is the multiplier? b.What is the equilibrium level of the real GDP? c.What is the value of autonomous consumption?

give answer with solution

4. Benjamin's income increases from $40,000 to $44,000. His consumption increases from $35,000 to $36,000. What is Benjamin's Marginal Propensity to Save? A..19 B..75 C. .81 D. 1.25

Suppose Ausland's spending for the year can be described by the table below: Construction of New Housing $50 Private Consumption $650 Government Spending on Public $400 Private Acquisition of Capital Goods $160 Goods and Services Exports $100 GST Revenue $20 Imports $80 Marginal Propensity to Consume 0.6 Marginal Tax Rate 0.25 Marginal Propensity to Import 0.05 What is the value of Ausland's Investment (1) expenditure? Select one: O a. $50 O b. $350 O c. $160 O d. $210

3. Assume that initially G is $300 and equilibrium real GDP is $5000. If the multiplier is 5, what would be the new equilibrium level of GDP if Government expenditures increase to $600.

10