Use the following information to calculate the level of consumption expenditure in this closed economy: • Real GDP = $1000 . • Taxes = $150 . Government Spending = $200 • Private investment = $250

Use the following information to calculate the level of consumption expenditure in this closed economy: • Real GDP = $1000 . • Taxes = $150 . Government Spending = $200 • Private investment = $250

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Table 11-6 Government Real GDP Consumption Investment Purchases 1 Net Exports $1,000 $1,000 $100 $150 -$50 2 3 2,000 1,900 100 150 -50 3,000 2,800 100 150 -50 4 4,000 3,700 100 150 -50 Using the table above, answer the following question. The numbers in the table are in billions of dollars. 13) Refer to Table 11-6. What is the value of MPC? A) 0.2 B) 0.5 C) 0.75 D0.9 E) None of the above
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