Assume that the MPS in an economy is equal to 0.25. The multiplier must be equal to 4.00. You have established that the multiplier is 4.00. Now assume that autonomous real consumption is $4 trillion. There is no other autonomous spending presently taking place economy. At what level is consumption equal to real GDP? trillion. (Round your answer to two decimal places) You have established that the multiplier is 4.00 and that autonomous real consumption is $4 trillion. There is autonomous investment of $4 trillion and autonomous net exports $11 trillion. At what level are expenditures equal to real GDP? $ trillion. (Round your answer to two decimal places)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Assume that the MPS in an economy is equal to 0.25. The multiplier must be equal to 4.00.
You have established that the multiplier is 4.00. Now assume that autonomous real consumption is $4 trillion. There is no other autonomous spending presently taking place in the
economy. At what level is consumption equal to real GDP?
$ trillion. (Round your answer to two decimal places)
You have established that the multiplier is 4.00 and that autonomous real consumption is $4 trillion. There is autonomous investment of $4 trillion and autonomous net exports of
$11 trillion. At what level are expenditures equal to real GDP?
trillion. (Round your answer to two decimal places)
Transcribed Image Text:Assume that the MPS in an economy is equal to 0.25. The multiplier must be equal to 4.00. You have established that the multiplier is 4.00. Now assume that autonomous real consumption is $4 trillion. There is no other autonomous spending presently taking place in the economy. At what level is consumption equal to real GDP? $ trillion. (Round your answer to two decimal places) You have established that the multiplier is 4.00 and that autonomous real consumption is $4 trillion. There is autonomous investment of $4 trillion and autonomous net exports of $11 trillion. At what level are expenditures equal to real GDP? trillion. (Round your answer to two decimal places)
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