Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 08, 2024

Equilibrium output in an economy is 1000, autonomous consumption is 50, MPC=0.9 and the tax rate is 0.2. a.Write down an expression for the consumption

Equilibrium output in an economy is 1000, autonomous consumption is 50, MPC=0.9 and the tax rate is 0.2.

a.Write down an expression for the consumption function.

b.What is the level of disposable income?

c.What is total consumption?

d.What is the level of saving?

e.If the marginal propensity to import is 0.1, what is the value of the multiplier?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Chinese Economy Transitions And Growth

Authors: Barry Naughton

1st Edition

0262640643, 9780262640640

More Books

Students also viewed these Economics questions

Question

★★★★★

Comment on the following. At any given instant, the standard times for many jobs will not be strictly correct. a. Wiry is this so? b. Does tins mean that those time standards are useless? Explain.

Answered: 1 week ago

Question

★★★★★

Chapter 6 - Concepts Overview and Exercises 13 2 points Seved Help Save & Exit Submit Check my work Exercise 6-4 (Algo) Basic Segmented Income Statement [LO6-4] Royal Lawncare Company produces and...

Answered: 1 week ago

Question

★★★★★

Happiness Many psychologists believe that each individual has a happiness set point, a general level of happiness to which he or she usually returns. This suggests that some people are simply happier...

Answered: 1 week ago

Question

★★★★★

You are assessing internal control in the audit of the payroll and personnel cycle for Rogers Products Company, a manufacturing company specializing in assembling computer parts. Rogers employs...

Answered: 1 week ago

Question

★★★★★

[The following information applies to the questions displayed below.] For many years, Leno Corporation has used a straightforward cost-plus pricing system, marking its goods up approximately 25...

Answered: 1 week ago

Question

★★★★★

PART 1 PART 2 PART 3 Required information [The following information applies to the questions displayed below.) Starbooks Corporation provides an online bookstore for electronic books. The following...

Answered: 1 week ago

Question

★★★★★

Ms. Mary Mulenga and Ms. Joyce Hachiintu are second year students from the National Institute of Public Administration pursuing a Bachelor of Arts in Public Administration. After writing their final...

Answered: 1 week ago

Question

★★★★★

Watch this wonderfully made video where flight instruction in France is conducted in English. https://www.youtube.com/watch?v=Y5NOncG7WHY How effective is this instructor in his delivery with the...

Answered: 1 week ago

Question

★★★★★

A medical supplies manufacturer that operates 250 days a year has a constant annual demand of 50,000 units of a certain medicine. The company has a daily production capacity of 500 units and the...

Answered: 1 week ago

Question

★★★★★

Question 6 0.5 Points Max Z=5X1 + 3X2 Subject to X1 + 2x2 10 X1-X2 8 X1, X2 0 In the starting Simplex tableau, X1 and X2 are non-basic variables and the value of Z is zero. The value of Z in the next...

Answered: 1 week ago

Question

★★★★★

What is a strategic business that Starbucks has or has recently faced; contextualized within the organizational setting, including an overview of relevant strategic decisions that led to its current...

Answered: 1 week ago

Question

★★★★★

Make a list of five specific financial and nonfinancial rewards you would recommend for Zappos. Next to each, indicate why you chose it.

Answered: 1 week ago

Question

★★★★★

What mistakes did they make in adopting and communicating the new salary plan? How might Sandy have approached this major compensation change a little differently?

Answered: 1 week ago

Question

★★★★★

Motivation is fine, but what companies need is performance. How does the Zappos approach seem to be doing in terms of improving employee performance?

Answered: 1 week ago

Previous Question Next Question