How would an increase in exports affect the level of national income?
Answer to relevant QuestionsFill in the missing cells for C, S, and I a in the following table, given that autonomous consumption = $100, MPC = 0.50, and intended investment = $200. Indicate whether the economy is in equilibrium. Use your imagination to create the first five rounds of a $1,000 change in aggregate expenditure. Show the final effect on national income when MPS = 0.10. What is a tax multiplier? How does it differ from the income multiplier? Calculate both the tax revenue required to gen erate the surplus budget shown and the change in national income that will result in each of the three cases in the following table. Why do we need money?
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