Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 18, Problem 12SQ
To determine
The autonomous consumption of the economy.
Expert Solution & Answer
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Students have asked these similar questions
Disposable income is the amount a household has
A
after subtracting autonomous spending.
B
after subtracting taxes and transfer payments to income.
C
sometimes called discretionary spending.
D
available for consumption spending and saving.
I got this one wrong, could you tell me the correct one? thank you
You are told that taxes in this economy are equal to 100. What is the value of autonomous consumption?
Planned
Government
Net Exports
Aggregate
Change in
Real GDP (Y) Consumption (C)
Investment (1') Purchases (G)
(NX)
Expenditures (AE)
Inventories
1500
1100
250
1600
1175
100
1700
1250
1800
1900
2000
75
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a
50
75
100
d.
125
Chapter 18 Solutions
Economics For Today
Ch. 18.4 - Prob. 1YTECh. 18 - Prob. 1SQPCh. 18 - Prob. 2SQPCh. 18 - Prob. 3SQPCh. 18 - Prob. 4SQPCh. 18 - Prob. 5SQPCh. 18 - Prob. 6SQPCh. 18 - Prob. 7SQPCh. 18 - Prob. 8SQPCh. 18 - Prob. 9SQP
Ch. 18 - Prob. 1SQCh. 18 - Prob. 2SQCh. 18 - Prob. 3SQCh. 18 - Prob. 4SQCh. 18 - Prob. 5SQCh. 18 - Prob. 6SQCh. 18 - Prob. 7SQCh. 18 - Prob. 8SQCh. 18 - Prob. 9SQCh. 18 - Prob. 10SQCh. 18 - Prob. 11SQCh. 18 - Prob. 12SQCh. 18 - Prob. 13SQCh. 18 - Prob. 14SQCh. 18 - Prob. 15SQCh. 18 - Prob. 16SQCh. 18 - Prob. 17SQCh. 18 - Prob. 18SQCh. 18 - Prob. 19SQCh. 18 - Prob. 20SQ
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Similar questions
- Disposable income ________ when ________. a. decreases; taxes increase b. decreases; transfer payments increase c. increases; government expenditures decrease d. decreases; aggregate income increasesarrow_forwardDisposable income ________ when ________. a.decreases; taxes increase b.decreases; transfer payments increase c.increases; government expenditures decrease d.decreases; aggregate income increasesarrow_forwardIf the government decreases taxes, disposable income does not change. falls. increases. This causes total consumer spending to not change. increase. decrease.arrow_forward
- Assume that the Equilibrium GDP is $4,000 billion. The Potential GDP is $5,000 billion. The marginal propensity to consume is 4/5 (0.8). By how much and in what direction should government purchases be changed? a. increase by $1,000 billion. c. increase by $100 billion. b. decrease by $1,000 billion. d. increase by $200 billion.arrow_forward1. Country X has following data: C = 20 + 0.8Y4, I = 30, G = 40, Tx = 20, T, = 15, X = 60, M = 20 + 0.04Y, incoming year growth target is 600, All figures is billion. Please calculate: a. National income equilibrium! b. Consumption and saving equilibrium! c. Government income from tax! d. How much change in government consumption if they want to achieve growth target?arrow_forwardAssume that a three-sector economy in Country W. The amount of autonomous consumption is RM300 million with the proportion of an increase in income that is spent on consumption is 05. An induced tax of 20% is imposed by the country. The amount of investment is RM250 million, and the amount of government spending is RM150 million. A) calculate the national income equilibrium.arrow_forward
- Juan owns a pizza shop. In 2021, Juan spent $20,000 upgrading the oven. This is an example of _____A. consumptionB. investmentC. government spendingD. taxationarrow_forwardIn a closed economy, GDP is $1000, government purchases are $200, consumption is $700 and the government has a budget surplus of $25. Using the given information calculate: a) investment, b) taxes, c) public saving.arrow_forwardanswer quicklyarrow_forward
- Need asap...arrow_forwardThe sum of the marginal propensity to save and the marginal propensity to consume Select one: A. always equals 0. B. is greater than zero but less than 1. C. sometimes equals 1. D. always equals 1. E. never equals 1.arrow_forwardConsider an economy in which GDP is $8.2 trillion, public saving is -$0.2 trillion, taxes are $0.9 trillion, private saving is $3.0 trillion, export is $0.6 trillion, and import is $0.5 trillion. Calculate government purchases. Calculate national saving and investment. Calculate consumption.arrow_forward
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