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The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.35 of national income, the MPC
The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.35 of national income, the MPC out of after-tax income is 0.8, investment is 110, government spending is 80, exports are 63, and imports are 0.2 of after-tax income.
National Income | After-tax income | Consumption | I+G+X | Minus Imports | Aggregate Expenditures |
100 | 104 | ||||
200 | |||||
300 | |||||
400 | |||||
500 | |||||
600 |
What does consumption equal when income equals 400?
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