BUSINESS • ECONOMICS Problem 1 Given the following for a closed economy I=3400 planned investment G=4000 Government spending C=3,800 +0.8 Yd consumption function T=1000 taxes Refer to problem 1. The AE function is equal to A)AE=10400+0.8Y B)AE=11200+0.8Y C)AE=7800+0.8Y D)A and B are correct Refer to problem 1. What is the equillibrium level of income? A) Y=$19000 B)Y=$56000 C) Y=52,000 D)Y=25,000

BUSINESS • ECONOMICS Problem 1 Given the following for a closed economy I=3400 planned investment G=4000 Government spending C=3,800 +0.8 Yd consumption function T=1000 taxes Refer to problem 1. The AE function is equal to A)AE=10400+0.8Y B)AE=11200+0.8Y C)AE=7800+0.8Y D)A and B are correct Refer to problem 1. What is the equillibrium level of income? A) Y=$19000 B)Y=$56000 C) Y=52,000 D)Y=25,000

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

5:44 PM
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BUSINESS• ECONOMICS
Problem 1
Given the following for a closed economy
I=3400 planned investment
G=4000 Government spending
C=3,800 +0.8 Yd consumption function
T=1000 taxes
Refer to problem 1. The AE function is
equal to
A)AE=10400+0.8Y
B)AE=11200+0.8Y
C)AE=7800+0.8Y
D)A and B are correct
Refer to problem 1. What is the
equillibrium level of income?
A) Y=$19000
B)Y=$56000
C) Y=52,000
D)Y=25,000

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