NOTE: The figures (200, 500, 750, 850, 1200 and 1400) in the rows represent the income...

 

Transcribed Image Text:

NOTE: The figures (200, 500, 750, 850, 1200 and 1400) in the rows represent the income in the first row. Suppose the consumption function, C-250+0.40Yd, I=200 and we assume that it's a balanced budget with G = T =150. 1. Tick the column indicating the equilibrium 10 points 200 500 750 850 900 1150 1400 Income Planned Investment Spending Тахes Disposable Income Savings Consumption Function Government Expenditure Planned 3. Determine the impact of the adjustment to disequilibrium when income 1 point is at 850 * Output Increase Equilibrium Output decrease 4. Determine the savings when income is at 1400 * 1 point Your answer 5. Determine the planned aggregate expenditure when income is at 500 * 1 point Your answer 6. Calculate the consumption function when income is at 1150 * 1 point Your answer 7. Determine the planned investment spending when income is at 750 * Your answer 8. Determine the government expenditure when income is at 200 * Your answer NOTE: The figures (200, 500, 750, 850, 1200 and 1400) in the rows represent the income in the first row. Suppose the consumption function, C-250+0.40Yd, I=200 and we assume that it's a balanced budget with G = T =150. 1. Tick the column indicating the equilibrium 10 points 200 500 750 850 900 1150 1400 Income Planned Investment Spending Тахes Disposable Income Savings Consumption Function Government Expenditure Planned 3. Determine the impact of the adjustment to disequilibrium when income 1 point is at 850 * Output Increase Equilibrium Output decrease 4. Determine the savings when income is at 1400 * 1 point Your answer 5. Determine the planned aggregate expenditure when income is at 500 * 1 point Your answer 6. Calculate the consumption function when income is at 1150 * 1 point Your answer 7. Determine the planned investment spending when income is at 750 * Your answer 8. Determine the government expenditure when income is at 200 * Your answer