Question 26 options:

Suppose a closed economy with no government spending or taxing. Suppose also that autonomous consumption is $400, intended investment is $200, and on average households will save 25 cents of every additional dollar of income they receive. Calculate the following (express your answers as whole numbers without decimals, commas, dollar signs, or anything else).

Multiplier:=

Value of output (Y) in equilibrium:=

Total consumption in equilibrium=

Question 27

Suppose a closed economy with no government spending or taxing is capable of producing an output of $1800 at full employment. Suppose also that autonomous consumption is $80, intended investment is $60, and the mpc is 0.50.

How much additional autonomous spending (for instance, from the government) is needed to move the economy to full employment?

Your Answer:

Question 28

Suppose that Jane's income increases from $1650 per month to $2300. At the same time, her consumption changes from $1100 per month to $1200 month. What is Jane's marginal propensity to consume? (Round your answer to two decimal places.)

Your Answer:

Question 30

Suppose output and income is equal to 8800, the marginal propensity to consume is 0.70, and autonomous consumption is 525. Calculate total saving for this economy, assuming no public or foreign sector. (Round your answer to the nearest whole number.)

Your Answer: