Question
a. Complete the table by determining the aggregate expenditure, the unplanned inventory change, savings and disposable income at all income levels b.Determine the marginal propensity
a. Complete the table by determining the aggregate expenditure, the unplanned inventory change, savings and disposable income at all income levels
b.Determine the marginal propensity to consume (MPC) and marginal
propensity to save.
Marginal propensity to save = Change in saving / change in income
100/100= 1
c.What is the equilibrium level of income?
d.Calculate the value of the multiplier
e.Suppose the economy is at equilibrium and the government raises taxes from $100 million to $200 million, what will happen the equilibrium income?
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Elementary Statistics
Authors: Robert R. Johnson, Patricia J. Kuby
11th Edition
978-053873350, 9781133169321, 538733500, 1133169325, 978-0538733502
