Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 05, 2024

In a closed economy with no government intervention, the following information is provided. C = 5000 + 0.8Y Autonomous investment is constant at 3000 units.

In a closed economy with no government intervention, the following information is provided.

C = 5000 + 0.8Y

Autonomous investment is constant at 3000 units. Induced investment is given by the equation I = 0.1Y

i)At what level of income will S = I?
ii)Suppose that autonomous investment was to increase by 2000 units. At what level
of income would S = I?

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

Power And Plenty Trade, War, And The World Economy In The Second Millennium

Authors: R Findlay, Ronald Findlay

1st Edition

0691143277, 9780691143279

More Books

Students also viewed these Economics questions

Question

★★★★★

Determine the appropriate difference equations for an axisymmetric, steady, spherical geometry with volumetric heat generation. Explain how to solve the equations.GIVENAxisymmetric, steady, spherical...

Answered: 1 week ago

Question

★★★★★

Ready Corporation reported net income of $ 153,000 for 2013. Depreciation Expense, Equipment of $ 10,000 was included on the income statement. The December 31 balances of current assets and current...

Answered: 1 week ago

Question

★★★★★

We consider the events A1, A2,, An of a sample space and, from these events, we form n new events B1, B2,, Bn defined as follows: B1 = A1, while for i = 2, 3,, n, (i) Verify that the events B1, B2,,...

Answered: 1 week ago

Question

★★★★★

Bradbury Corporation turns its inventory five times each year, has an average payment period of 25 days, and has an average collection period of 32 days. The firms annual sales are $3.6 billion, its...

Answered: 1 week ago

Question

★★★★★

Redbird Company reports the following data for 2009: Cost of goods manufactured Direct materials used Direct labor incurred Work in process inventory, Jan. 1, 2009 $69,500 27,000 25,000 11,000...

Answered: 1 week ago

Question

★★★★★

Required Indicate whether each of the following variances is favorable (F) or unfavorable (U). The first one has been done as an example. (Select "None" if there is no effect (i.e., zero variance).)...

Answered: 1 week ago

Question

★★★★★

Sarah Johnson is the health information manager for the Columbus County Alcohol and Drug Treatment Center, a CARF-accredited, publicly funded treatment facility. As a member of the quality...

Answered: 1 week ago

Question

★★★★★

Learning Outcomes 1. Implement a class with many members 2. Implement properties, initializers, and class methods 3. Override methods inherited from object 4. Design methods to avoid using mutable...

Answered: 1 week ago

Question

★★★★★

Organizational Innovations... 167 Exercise 5 (Costs of Quality Analysis, Nonfinancial Quality Measures) Canada Industries manufactures two types of refrigerators, Victoria and Vancouver. Information...

Answered: 1 week ago

Question

★★★★★

Which of the following option is false? Select the most suitable answer. Select one: O a. The value of long forward increases as the price of the asset rises. O b. A 1-year forward contract is an...

Answered: 1 week ago

Question

★★★★★

A client reports having a drink of alcohol (sometimes two) every night before bed. The client's doctor has advised against alcohol use due to diabetes diagnosis. The client believes one drink does...

Answered: 1 week ago

Question

★★★★★

2. Some leaders in business and industry say that worker pride is the byproduct of achievement. What are your thoughts? What factors constitute achievement at your local McDonalds restaurant? Your...

Answered: 1 week ago

Question

★★★★★

1. Judith Sills, clinical psychologist who writes a column for Psychology Today, says your brand is the professional identity you create in the minds of others. Would you take the time to create your...

Answered: 1 week ago

Question

★★★★★

1. Oprah Winfrey is one of Americas most popular talk-show hosts. Consider the behaviors she displays on her show, and then complete the following exercises:

Answered: 1 week ago

Previous Question Next Question