Question
Answer the following questions using the aggregate expenditures model of the economy described below. C = 650 +0.55 Yd T = 245 I =
Answer the following questions using the aggregate expenditures model of the economy described below. C = 650 +0.55 Yd T = 245 I = 600 G = 550 X = 150 M = 0.1 Y (a) What are the marginal propensity to consume Number propensity to import Number (b) What is the marginal propensity to save? Number , and the marginal (c) The saving function is: S = Number + Number Yd. (d) What is the equilibrium level of real GDP? Number (e) What is the size of the multiplier? Number (f) Suppose the full employment level of real GDP is 3,450.45. What is the size of the (-) recessionary gap or (+) inflationary gap (ye-yf)? (Include the negative sign for recessionary gap) Number
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To answer the questions using the aggregate expenditures model lets analyze the given information C 650 055Yd T 245 I 600 G 550 X 150 M 01Y a The marg...Get Instant Access with AI-Powered Solutions
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