Question
The consumption function of an economy is given by Consumption = 75+0.75 DI (Disposable income). a) If the govt decided to raise its spending by
The consumption function of an economy is given by
Consumption = 75+0.75 DI (Disposable income).
a) If the govt decided to raise its spending by $10b calculate the net impact on the level of GDP. Show calculations below to score full marks.
b) What will be the Consumption level if the disposable income is $1,000b.
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Structural Analysis
Authors: Aslam Kassimali
5th Edition
1305142896, 9781305142893
