Calculate savings, MPC, MPS, break-even income, and the equilibrium level of income (Y = AE = C
Fantastic news! We've Found the answer you've been seeking!
Question:
Calculate savings, MPC, MPS, break-even income, and the equilibrium level of income (Y = AE = C + I + G +NX) in the below given information.
Draw a graph showing disposable income (Yd) on the horizontal axis and aggregate expenditures (AE) on the vertical axis with a 45 degree line. Graph consumption curve (CC) and AE (AE = C + I + G + NX) curve on this graph. Indicate equilibrium level of income on this graph.
Income (Yd) | Consumption Expenditure | Saving | Investment Expenditure | Government Expenditure | Net Export Expenditure | Aggregate Expenditure |
$8000 | $11,000 | $2,500 | $5,000 | $12,500 | ||
12,000 | 14,000 | 2,500 | 5,000 | 12,500 | ||
20,000 | 20,000 | 2,500 | 5,000 | 12,500 | ||
30,000 | 27,500 | 2,500 | 5,000 | 12,500 | ||
50,000 | 42,500 | 2,500 | 5,000 | 12,500 | ||
100,000 | 80,000 | 2,500 | 5,000 | 12,500 |
Related Book For
Posted Date: