Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 12 2 pts Suppose that autonomous consumption is 2,095, government purchases are 519, taxes are 0, planned investment spending is 554, net exports are
Question 12 2 pts Suppose that autonomous consumption is 2,095, government purchases are 519, taxes are 0, planned investment spending is 554, net exports are 77, and the MPC is 0.7. What is the value of autonomous spending? Round your answer to the closest 2 decimal places if needed. Do not enter dollar signs ($) in your answer. Question 13 2 pts Potential GDP equals $500 billion. The economy is currently producing GDP equal to $450 billion. If the MPC is 0.66, then autonomous spending must change by $ billion for the economy to move to potential GDP? Please round to two decimal places where needed
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