Consider a Keynesian model: Full employment output = R100 million Tax rate = 0,25 Investment = R40 million Autonomous consumption =R30 million Marginal propensity to consume = 0,8 3.28 The value of the multiplier is... *** [1] 2 [2] 1.67 [3] 2.5 [4] 4 3.29 The equilibrium level of income is ... [1] R70 million. [2] R175 million. [3] R280 million. [4] R140 million. 3.30 To bring about full employment, government spending should be [1] -R30 million. (2] -R72 million. [3] R30 million. (4) R75 million.
Consider a Keynesian model: Full employment output = R100 million Tax rate = 0,25 Investment = R40 million Autonomous consumption =R30 million Marginal propensity to consume = 0,8 3.28 The value of the multiplier is... *** [1] 2 [2] 1.67 [3] 2.5 [4] 4 3.29 The equilibrium level of income is ... [1] R70 million. [2] R175 million. [3] R280 million. [4] R140 million. 3.30 To bring about full employment, government spending should be [1] -R30 million. (2] -R72 million. [3] R30 million. (4) R75 million.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Consider a Keynesian model:
Full employment output R100 million
Tax rate = 0,25
Investment =R40 million
Autonomous consumption R30 million
Marginal propensity to consume = 0,8
3.28 The value of the multiplier is ...
[1) 2
[2] 1.67
[3] 2.5
[4] 4
3.29 The equilibrium level of income is
...
[1] R70 million.
[2] R175 million.
[3] R280 million.
[4] R140 million.
3.30 To bring about full employment, government spending should be
[1] -R30 million.
(2) -R72 million.
[3] R30 million.
(4) R75 million.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f6caf3f-0ac2-4b3c-8202-e3f17b91a351%2Ffcd00c29-ec09-4a11-af35-288f94bed3a3%2F8ymjhi6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider a Keynesian model:
Full employment output R100 million
Tax rate = 0,25
Investment =R40 million
Autonomous consumption R30 million
Marginal propensity to consume = 0,8
3.28 The value of the multiplier is ...
[1) 2
[2] 1.67
[3] 2.5
[4] 4
3.29 The equilibrium level of income is
...
[1] R70 million.
[2] R175 million.
[3] R280 million.
[4] R140 million.
3.30 To bring about full employment, government spending should be
[1] -R30 million.
(2) -R72 million.
[3] R30 million.
(4) R75 million.
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