For this problem set, we're going to keep things simple. Be sure to watch the lecture before completing this. Please use the following information and the following model from your book (and the lecture) to calculate Y (aggregate incomes in an economy). BE SURE TO SHOW YOUR WORK (It's the reason I made this a problem set instead of a quiz) Y-C+I+G C- Co + C;(Y-t) Total spending in a small society: • Household spending on medicine: $4,000 • Household spending on food: $1,000 • Household spending on recreation and entertainment: 20% of income Household spending on clothing: 15% of income • Household spending on art: 40% of income • Business investment on product lines: $10,000 • Business investment on equipment: $1,500 • Government spending on national defense: $3,600 • Government spending on roads: $2,000

For this problem set, we're going to keep things simple. Be sure to watch the lecture before completing this. Please use the following information and the following model from your book (and the lecture) to calculate Y (aggregate incomes in an economy). BE SURE TO SHOW YOUR WORK (It's the reason I made this a problem set instead of a quiz) Y-C+I+G C- Co + C;(Y-t) Total spending in a small society: • Household spending on medicine: $4,000 • Household spending on food: $1,000 • Household spending on recreation and entertainment: 20% of income Household spending on clothing: 15% of income • Household spending on art: 40% of income • Business investment on product lines: $10,000 • Business investment on equipment: $1,500 • Government spending on national defense: $3,600 • Government spending on roads: $2,000

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

For this problem set, we're going to keep things simple. Be sure to watch the lecture before completing this. Please
use the following information and the following model from your book (and the lecture) to calculate Y (aggregate
incomes in an economy). BE SURE TO SHOW YOUR WORK (It's the reason I made this a problem set instead of a
quiz)
Y=C+1+G
C= Co + C;(Y-t)
Total spending in a small society:
Household spending on medicine: $4,000
Household spending on food: $1,000
• Household spending on recreation and entertainment: 20% of income
• Household spending on clothing: 15% of income
• Household spending on art: 40% of income
• Business investment on product lines: $10,000
• Business investment on equipment: $1,500
• Government spending on national defense: $3,600
• Government spending on roads: $2,000

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