Consider the following information on aggregate income, consumption expenditure, and planned investment for a country:AggregateOutput/Income$3,9504,150PlannedConsumptionInvestment$3,6103,7703,9304,0904,2504,4104,5704,730$5005004,3504,5504,7504,9505005005005005.1505005,350500When aggregate income is $4,350,O A. saving is $420 and unplanned investment (inventory change) is - $80.B. saving is $40 and unplanned investment (inventory change) is - $80.OC. saving is - $420 and unplanned investment (inventory change) is $500.O D. saving is - $80 and unplanned investment (inventory change) is $500.The equilibrium level of output/income is S (Enter your response as an integer.)Based on the information above, calculate the MPC and MPS.MPC =|. (Round your response to two decimal places.)MPS =(Round your response to two decimal places.)

Formulas: 1. Saving (S) = Income (Y) - Consumption(C) 2. MPC = ∆C/∆Y 3. MPC + MPS = 1

Consider the following information on aggregate income, consumption expenditure, and planned investment for a country: Planned Aggregate Output/Income $3,950 4,150 Consumption Investment $500 500 $3,610 3,770 3,930 4,090 4,250 4,410 4,570 4,730 4,350 4,550 4,750 4,950 500 500 500 500 5,150 5,350 500 500 When aggregate income is $4,350, O A. saving is $420 and unplanned investment (inventory change) is - $80. O B. saving is $40 and unplanned investment (inventory change) is - $80. OC. saving is - $420 and unplanned investment (inventory change) is $500. O D. saving is - S80 and unplanned investment (inventory change) is $500. The equilibrium level of output/income is S. (Enter your response as an integer.) Based on the information above, calculate the MPC and MPS.

Consider the following information on aggregate income, consumption expenditure, and planned investment for a country: Planned Aggregate Output/Income $3,950 4,150 Consumption Investment $500 500 $3,610 3,770 3,930 4,090 4,250 4,410 4,570 4,730 4,350 4,550 4,750 4,950 500 500 500 500 5,150 5,350 500 500 When aggregate income is $4,350, O A. saving is $420 and unplanned investment (inventory change) is - $80. O B. saving is $40 and unplanned investment (inventory change) is - $80. OC. saving is - $420 and unplanned investment (inventory change) is $500. O D. saving is - S80 and unplanned investment (inventory change) is $500. The equilibrium level of output/income is S. (Enter your response as an integer.) Based on the information above, calculate the MPC and MPS.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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