Environment Hussein Bhaloo 03/10/23 12:35 PM Quiz: Quiz 3 Chapters 22, 23 - Question 11 of 18 This quiz: 100 point(s) possible BBUS1007_2022-02 This question: 14 point(s) possible Submit quiz The diagram to the right shows desired aggregate expenditure for the economy of Sunset Island. The AE curve assumes a net tax rate (t) of 10 percent, a marginal propensity to consume of 0.80, Aggregate Expenditure and Equilibrium autonomous exports of $100 billion, and a marginal propensity to import (m) of 15 percent. 1,500- 1,400 45 line a. What is the level of desired investment expenditure (1)? 1,300- 1,200- The level of desired investment expenditure is $ billion. (Round your response to the nearest 1, 100- whole number.) 1,000 900- b. What is the level of government purchases (G)? 800- Desired Aggregate Expenditures ($ billions The level of government purchases is $ billion. (Round your response to the nearest 700- 600- whole number.) 500- c. What is the autonomous portion of consumption? 400- T + G 300- The autonomous portion of consumption is $ billion. (Round your response to the nearest 200- whole number.) 100- of d. What is total autonomous expenditure? 200 400 600 800 1,000 1,200 1,400 National Income ($ billions) Total autonomous expenditure is $ billion. (Round your response to the nearest whole number.) O The marginal propensity to spend is | . (Round your response to two decimal places.) Time Remaining: 00:54:52 Next Search CH ENG 12:35 PM 1 Snow US 2023-03-10Quiz: Quiz 3 Chapters 22, 23 - This quiz: 100 point(s) possible Question 11 of 18 BBUS1007_2022-02 This question: 14 point(s) possible e. Starting from equilibrium national income of $1, 163 billion, suppose government purchases decreased by $25 billion. Describe the effect on the AE curve and on equilibrium national income. Aggregate Expenditure and Equilibrium 1,500- 45 line The AE curve shifts and equilibrium national income changes by $ billion. (Round your 1,400- 1,300- JAE response to the nearest whole number. Use the rounded value of the marginal propensity to spend obtained above. For example, if the marginal propensity to spend is found to be 0.375 but rounded 1,200- 1 , 100- to 0.38, you should use the value of 0.38, not 0.375.) 1,000- f. Starting from equilibrium national income of $1,163 billion, and continuing to assume a marginal 900- propensity to import (m) of 15 percent and a marginal propensity to consume of 0.80, suppose the 800- Desired Aggregate Expenditures ($ billions) net tax rate increased from 10 percent to 20 percent of national income. Describe the effect on the . . . AE curve and on equilibrium national income. The marginal propensity to spend is now . (Round your response to two decimal places.) 8 8 8 T + G With this change, equilibrium national income will 200 100 g. Starting from equilibrium national income of $1, 163 billion, and assuming a marginal propensity to spend of 0.57, suppose investment spending increased by $200 billion. Describe the effect on 200 400 600 800 1,000 1,200 1,400 the AE curve and on equilibrium national income. National Income ($ billions) The AE curve shifts and equilibrium national income changes by $ billion. (Round your response to the nearest whole number.) 1 Time Remaining: 00:54:43 2" C Snow Search ENG USMacroeconomics: Canada in Global Environment Hussein Bhaloo 03/10/23 12:35 PM (?) E Quiz: Quiz 3 Chapters 22, 23 - This quiz: 100 point(s) possible BBUS1007 2022-02 Question 11 of 18 This question: 14 point(s) possible Submit quiz The marginal propensity to spend is now . (Round your response to two decimal places.) Aggregate Expenditure and Equilibrium 1,500- With this change, equilibrium national income will 2 1,400- 45 line Q 1,300- g. Starting from equilibrium national income of $1, 163 billion, and assuming a marginal propensity 1,200- to spend of 0.57, suppose investment spending increased by $200 billion. Describe the effect on 1, 100- the AE curve and on equilibrium national income. 1,000- 900- The AE curve shifts and equilibrium national income changes by $ billion. (Round your 800- Desired Aggregate Expenditures ($ billions) response to the nearest whole number.) 700- 600 h. Starting from equilibrium national income of $1, 163 billion and continuing to assume a net tax 500 rate (t) of 10 percent and a marginal propensity to consume of 0.80, suppose the marginal propensity to import fell from 15 percent to 10 percent of national income. Describe the effect on 400 + G the AE curve and on equilibrium national income. 300- 200- The new marginal propensity to spend is . (Round your response to two decimal places.) 100 of 200 400 600 800 1,000 1,200 1,400 The AE curve becomes and equilibrium national income changes by $ | billion. (Round National Income ($ billions) your response to the nearest whole number. Use the rounded value of the marginal propensity to spend obtained above. For example, if the marginal propensity to spend is found to be 0.375 but rounded to 0.38, you should use the value of 0.38, not 0.375.) Time Remaining: 00:54:34 Next -2 C Snow Search CH ENG 12:35 PM US 2023-03-10 1