Assume in a simple economy that the level of saving is - $800 when aggregate output equals zero and that the marginal propensity to save is 0.25. 4.400 Derive the saving function and the consumption function. 3.00 45 OA S-800 0.25Y and C-800 0.75Y 3.200 OB S-800-0.26Y and C800 +0.75Y OC. B-800-0.25Y and C800 -0.75Y OD. S-800 -0.025Y and C800-0.075Y u 2000 1.400 Draw a graph showing these functions. 00 1.) Using the ine drawing tool, draw the consumption function. Label your line C. 200 2.) Using the ine drawing tool, draw the saving function. Label your ine S. 400-4 Note: Carefully folow the instructions above and only draw the required objects. Aggregate incone Y The consumption curve crosses the 45-degree line at a level of output of $ (Enter your response as an integer)

MACROECONOMICS
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ISBN:9781337794985
Author:Baumol
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Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section9.A: The Simple Algebra Of Income Determination And The Multiplier
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Economics
Assume in a simple economy that the level of saving is -$800 when aggregate output equals zero and that the marginal
propensity to save is 0.25.
4.400
Derive the saving function and the oonsumption function.
3800
45 ne
3.200
OA S-800 +0.25Y and C-800 •0.75Y
OB S- B00 -0.26Y and C B00 +0.75Y
OC. B-800 -0.25Y and C-800 -0.75Y
OD. S-800-0.025Y and C800 -0.075Y
U 2.000
1400
Draw a graph showing these functions.
00
1.) Using the ine drawing toot, draw the consumption tunction. Label your line C.
200
2.) Using the ine drawing tool, draw the saving function. Label your ine S.
ebo o 1do0 2400 000 do
400-
Note: Carefully folow the instructions above and only draw the required abjects.
Aggregate income. Y
The consumption curve crosses the 45-degree line at a level of output of S (Enter your response as an integer)
Transcribed Image Text:Economics Assume in a simple economy that the level of saving is -$800 when aggregate output equals zero and that the marginal propensity to save is 0.25. 4.400 Derive the saving function and the oonsumption function. 3800 45 ne 3.200 OA S-800 +0.25Y and C-800 •0.75Y OB S- B00 -0.26Y and C B00 +0.75Y OC. B-800 -0.25Y and C-800 -0.75Y OD. S-800-0.025Y and C800 -0.075Y U 2.000 1400 Draw a graph showing these functions. 00 1.) Using the ine drawing toot, draw the consumption tunction. Label your line C. 200 2.) Using the ine drawing tool, draw the saving function. Label your ine S. ebo o 1do0 2400 000 do 400- Note: Carefully folow the instructions above and only draw the required abjects. Aggregate income. Y The consumption curve crosses the 45-degree line at a level of output of S (Enter your response as an integer)
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