1.) Suppose a closed economy with no government spending or taxing is capable of producing an output of $2050 at full employment. Suppose also that autonomous consumption is $150, intended investment is $60, and the mpc is 0.50. How much additional autonomous spending (for instance, from the government) is needed to move the economy to full employment?
1.) Suppose a closed economy with no government spending or taxing is capable of producing an output of $2050 at full employment. Suppose also that autonomous consumption is $150, intended investment is $60, and the mpc is 0.50.
How much additional autonomous spending (for instance, from the government) is needed to move the economy to full employment?
2.)Suppose a closed economy with no government spending or taxing is capable of producing an output of $1200 at full employment. Suppose also that autonomous consumption is $120, intended investment is $70, and the mpc is 0.50. What is the value of output (Y) in equilibrium?
3.)Suppose output and income is equal to 24400, the marginal propensity to consume is 0.80, and autonomous consumption is 650. Calculate total saving for this economy, assuming no public or foreign sector. (Round your answer to the nearest whole number.)
4. According to the lectures, which of the following ideas are representative of (neo)classical (orthodox) theory, which are representative of (post)Keynesian (heterodox) theory, and which are shared by both theories?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
