Define the term aggregate demand e) Explain the terms marginal propensity to f) Suppose that the aggregate
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Define the term aggregate demand
e) Explain the terms "marginal propensity to"
f) Suppose that the aggregate consumption function is given by the equation: C = 200+ 0.8YD, where C represents consumption and YD represents disposable income.
i. (Scenario: Aggregate Consumption Equation) If disposable income is Ksh500, Calculate the aggregate consumption
ii. (Scenario: Aggregate Consumption Equation) If disposable income is Ksh500, Calculate the autonomous consumption
g) Explain the term "equilibrium quantity"
Related Book For
Macroeconomics
ISBN: 978-1464168505
5th Canadian Edition
Authors: N. Gregory Mankiw, William M. Scarth
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