Calculate consumption for each level of national income, given the accompanying levels of autonomous consumption, C a , and marginal propensities to consume.
Answer to relevant QuestionsCalculate the level of autonomous investment, I, for each level of national income. Calculate the 2010 and 2011 MPCs for each of the countries when national income falls by 1,000. What effect would an upward shift in the investment curve have on the equilibrium level of national income? Imagine an economy with the consumption function C = $100 + 0.90Y. Now consider four scenarios of intended investment: (1) I i = $100, (2) I i = $150, (3) I i = 250, and (4) I i = 350. Calculate the equilibrium levels of ...Why is the balanced budget multiplier always equal to 1?
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