Question: I need some help with this question. year 1Y =100$, T=50$, C=40$, I=50$ year 2Y =150$, T=50$, C=80$, I=50$ year 3Y =300$, T=50$, C=200$, I=50$
I need some help with this question.
year 1Y =100$, T=50$, C=40$, I=50$
year 2Y =150$, T=50$, C=80$, I=50$
year 3Y =300$, T=50$, C=200$, I=50$
Suppose you are given the following information about Macroland, a small closed economy where Y is real GDP, T is taxes, C is consumption spending, and I is planned investment spending. Assume that government spending is currently equal to $0., taxes are constant at $50, and the aggregate price level is originally fixed and has a value of 100. a. what is the disposable income for each year? b. What is the MPC (Marginal propensity to consume) of this economy? c. What is the MPS (Marginal propensity to save) of this economy? d. What is the value of the multiplier for this economy? e. What is the consumption function for this economy?
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