1.lf the government decreases its purchases of goods and services by $15,000 and the MPS is 0.5, GDP and income will eventually decrease by A. $7,500. B. $10,000. C. $15,000. D. $30,000. 2. When equilibrium output equals $4000 and taxes is given = $600 in an economy wiithout government. The stated economy can be characterized by the consumption function = 600 + 0.6Yd. At the equilibrium, what is the saving in this economy? A. $760.00 B. $1000.00 C. $2040.00 D. $2640.00

1.lf the government decreases its purchases of goods and services by $15,000 and the MPS is 0.5, GDP and income will eventually decrease by A. $7,500. B. $10,000. C. $15,000. D. $30,000. 2. When equilibrium output equals $4000 and taxes is given = $600 in an economy wiithout government. The stated economy can be characterized by the consumption function = 600 + 0.6Yd. At the equilibrium, what is the saving in this economy? A. $760.00 B. $1000.00 C. $2040.00 D. $2640.00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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