53. Consider an economy described by the following parameters:C=1000 +0.8(Y - T)Government purchases=2000NX=500Gross Investment=D1300Tax=1000The level of autonomous consumption is:O a. 1100O b. 900Oc. 1000O d. 800

The consumption function = c+ b(Y-T) where, b = slope(MPC)

53. Consider an economy described by the following parameters: C=1000+0.8(Y -T) Government purchases=2000 NX=500 Gross Investment=1300 Tax=1000 The level of autonomous consumption is: O a. 1100 O b. 900 Oc. 1000 d. 800

53. Consider an economy described by the following parameters: C=1000+0.8(Y -T) Government purchases=2000 NX=500 Gross Investment=1300 Tax=1000 The level of autonomous consumption is: O a. 1100 O b. 900 Oc. 1000 d. 800

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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Question

53. Consider an economy described by the following parameters:
C=1000 +0.8(Y - T)
Government purchases=2000
NX=500
Gross Investment=D1300
Tax=1000
The level of autonomous consumption is:
O a. 1100
O b. 900
Oc. 1000
O d. 800

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