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Autonomous Consumption R535m Marginal propensity to consume is 0.75 Investment Spending R322m Government Spending R300m Imports R175m + 0.08Y Exports R283m Taxes = 0.1Y Full employment level of output is R3 483m Q.4.2.1 Calculate the equilibrium level of income in this economy. (Note: Show all your calculations and round off to two decimal places.) Q.4.2.2 A portion of the imports of a country are related to the level of income in the economy. Calculate the value of induced imports in this economy, given the equilibrium level of output. Q.4.2.3 Calculate the change in government spending that could move this

Autonomous Consumption R535m Marginal propensity to consume is 0.75 Investment Spending R322m Government Spending R300m Imports R175m + 0.08Y Exports R283m Taxes = 0.1Y Full employment level of output is R3 483m Q.4.2.1 Calculate the equilibrium level of income in this economy. (Note: Show all your calculations and round off to two decimal places.) Q.4.2.2 A portion of the imports of a country are related to the level of income in the economy. Calculate the value of induced imports in this economy, given the equilibrium level of output. Q.4.2.3 Calculate the change in government spending that could move this

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Good day please help with this q for economics
Q.4.2 The following information is provided for an open economy with a government. Use the information to answer Q.4.2.1 to Q.4.2.3 (Note: Round off your answers to two decimal places): Autonomous Consumption R535m Marginal propensity to consume is 0.75 Investment Spending R322m Government Spending R300m Imports R175m + 0.08Y Exports R283m Taxes = 0.1Y Full employment level of output is R3 483m Q.4.2.1 Calculate the equilibrium level of income in this economy. (Note: Show all your calculations and round off to two decimal places.) Q.4.2.2 A portion of the imports of a country are related to the level of income in the economy. Calculate the value of induced imports in this economy, given the equilibrium level of output. Q.4.2.3 Calculate the change in government spending that could move this economy to the full employment level of output.
Transcribed Image Text:Q.4.2 The following information is provided for an open economy with a government. Use the information to answer Q.4.2.1 to Q.4.2.3 (Note: Round off your answers to two decimal places): Autonomous Consumption R535m Marginal propensity to consume is 0.75 Investment Spending R322m Government Spending R300m Imports R175m + 0.08Y Exports R283m Taxes = 0.1Y Full employment level of output is R3 483m Q.4.2.1 Calculate the equilibrium level of income in this economy. (Note: Show all your calculations and round off to two decimal places.) Q.4.2.2 A portion of the imports of a country are related to the level of income in the economy. Calculate the value of induced imports in this economy, given the equilibrium level of output. Q.4.2.3 Calculate the change in government spending that could move this economy to the full employment level of output.
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