Question: . Write an equation expressing disposable income as a function of national income. Upper Y Subscript Upper DYDequals = 0 . 8 0 0 .
Write an equation expressing disposable income as a function of national income.
Upper Y Subscript Upper DYDequalsY
Round your response to two decimal places.
Part
d Write an equation expressing consumption as a function of national
income.
Write the constant values in billions of dollars.
CequalsplusY
Round your response for the intercept to the nearest whole number, and round your response for the slope to two decimal places.
Part
e Write an equation for the AE function. Write the constant values in billions of dollars.
AEequalsplusY
Round your response for the intercept to the nearest whole number, and round your response for the slope to two decimal places.
Part
f What is the marginal propensity to spend out of national income?
The marginal propensity to spend out of national income is
Round your response to two decimal places.
Part
g Calculate the simple multiplier for Sunrise Island.
The simple multiplier for Sunrise Island is
Round your response to two decimal places.
CThe economy of Sunrise Island has the following features: fixed price level no foreign trade autonomous desired investment I of $ billion autonomous government purchases G of $ billion autonomous desired consumption c of $ billion marginal propensity to consume out of disposable income of net tax rate of of national incomeYDRound your response for the intercept to the nearest whole number, and round your response for the slope to two decimal places.TY Round your response to two decimal places.Upper Y Subscript Upper DY Round your response to two decimal places.CYRound your response for the intercept to the nearest whole number, and round your response for the slope to two decimal places.AEYRound your response for the intercept to the nearest whole number, and round your response for the slope to two decimal places.The marginal propensity to spend out of national income isRound your response to two decimal places.The simple multiplier for Sunrise Island isRound your response to two decimal places.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
