An economy is described by the following equations: C - 1,800 + 0.6 (Y – T) IP = 900 G - 1,500 NX - 100 T - 1,500 Y* - 9,000 a. Find a numerical equation linking planned aggregate expenditure to output. Instructions: Enter the value for mpc rounded to one decimal place. PAE= ]+D Y !!

An economy is described by the following equations: C - 1,800 + 0.6 (Y – T) IP = 900 G - 1,500 NX - 100 T - 1,500 Y* - 9,000 a. Find a numerical equation linking planned aggregate expenditure to output. Instructions: Enter the value for mpc rounded to one decimal place. PAE= ]+D Y !!

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

An economy is described by the following equations:
C - 1,800 + 0.6 (Y - T)
- 900
G - 1,500
NX - 100
T - 1,500
Y* - 9,000
IP
a. Find a numerical equation linking planned aggregate expenditure to output.
Instructions: Enter the value for mpc rounded to one decimal place.
PAE=
]+O Y
b. Find autonomous expenditure and induced expenditure in this economy.
Instructions: Enter the value for mpc rounded to one decimal place.
Autonomous expenditure:
Induced expenditure:

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