A numerical Aggregate Expenditure model is described by the equations AE= 100+.6Y S=.16Y-120- NX-50-.04Y B= 20Y-100...

Transcribed Image Text:

A numerical Aggregate Expenditure model is described by the equations AE= 100+.6Y S=.16Y-120- NX-50-.04Y B= 20Y-100 a) Equilibrium National Income is equal to b) The Spending Multiplier is equal to c) The Direct Tax Rate is equal to d) The Marginal Propensity to Consume out of Disposable Income is equal to e) The Marginal Propensity to Import out of National Income is equal to f) National Saving is equal to B) Gross Investment Expenditure is equal to h) If Government Expenditure is increased by 200, equilibrium National Income will increase by i) If Government Expenditure is increased by 200 and Indirect Taxes are increased by 200, equilibrium National Income will increase by. A numerical Aggregate Expenditure model is described by the equations AE= 100+.6Y S=.16Y-120- NX-50-.04Y B= 20Y-100 a) Equilibrium National Income is equal to b) The Spending Multiplier is equal to c) The Direct Tax Rate is equal to d) The Marginal Propensity to Consume out of Disposable Income is equal to e) The Marginal Propensity to Import out of National Income is equal to f) National Saving is equal to B) Gross Investment Expenditure is equal to h) If Government Expenditure is increased by 200, equilibrium National Income will increase by i) If Government Expenditure is increased by 200 and Indirect Taxes are increased by 200, equilibrium National Income will increase by.

Answer rating: 100% (QA)

a Equilibrium National Income is equal to S16Y120 b The Spen... View the full answer