Question: 5. Use the following equation for consumption to give the numerical answers to the questions that follow: (6 marks) C=495+.98(1-.37)Y a) What is autonomous

5. Use the following equation for consumption to give the numerical answers

5. Use the following equation for consumption to give the numerical answers to the questions that follow: (6 marks) C=495+.98(1-.37)Y a) What is autonomous consumption? What is the marginal propensity to consume? b) c) What is the income tax rate? d) 37 If national income (Y) is $3800, what is the total amount of tax that the government will collect? What is the amount of disposable income in the country? 2394 5--405 10 e) What is the equation for savings in this economy? 6. Use the following system of equations to give numerical answers to the questions that follow C = 598+.76(1-.42)Y | = 185 G = 325 T = 267 4408 X = 542 (4 marks) M=158+.03Y a) What is the equation for Aggregate Expenditure? AF = VOR SHY Y +1225 b) What is the marginal propensity to import? 0.03 c) 125 Draw the AE diagram in the space provided below. Be sure to label it completely and in the value of the constant in the equation. Label the line AE1. AET

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