Question
Assume that all taxes in the economy are autonomous and the values for planned investment, government expenditures, and autonomous taxes are given: pI = 100
Assume that all taxes in the economy are autonomous and the values for planned investment, government expenditures, and autonomous taxes are given: pI = 100 G = 100 T = 50
The consumption function is: C = 50 + 0.5 YD. Calculatethe level of consumption when the level of income is 850.
a. 475
b. 375
c.425
d.450
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Principles of Economics
Authors: N. Gregory Mankiw
8th edition
1305585127, 978-1305971493, 978-1337516860, 1337516864, 978-0357539200, 978-1305585126
