Question
C = 60 + 0.90Yp (consumption function) I = 200 (investment) G = 200 (government spending) T = 0.25Y (taxes) X = 100 (exports) IM
C = 60 + 0.90Yp (consumption function) I = 200 (investment) G = 200 (government spending) T = 0.25Y (taxes) X = 100 (exports) IM = 0.10Y (imports)
What is the value of the Autonomous Expenditure? (1 mark) B. What is the value of the induced expenditure? (1 mark) C. What is the Aggregate Expenditure formula, given the values above? (1 mark) D. Given the Aggregate Expenditure, what is the National Income? (1 mark) E. With a rise in Exports from 100 to 150, what is the rise in National Income? (2 marks) F. What is the simple Multiplier given this AE function above? (1 mark)
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