In a two sector economy, suppose that consumption expenditure is 80% of the income and that the level of investment is Ksh20 millions.Find the equilibrium level of output.

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A: Gross Domestic Product (GDP) is an economic tool that measures the financial performance and health…

Q: Show all the necessary steps that lead to your answer. 1. ​Consumption​ $6000 (in billion) Gross…

A: Gross Domestic Product is the value of all goods and services that are produced within the…

Q: Give the equation for a linear consumption function?

A: According to the given question Simply we can say that a linear consumption function is an function…

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A: The objective of the question is to calculate the growth rate in real GDP from 2010 to 2011.

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Q: According to the figure showing 2020 GDP for selected countries, how much larger (in percentage…

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Q: It is expected that in the next twenty years the gross domestic product of China will become larger…

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Q: If an increase $ 1000 in investment in an economy results in an increase in income of $40000,…

A: The change in investment = $1000 The change in Income = $40000

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A: Businesses operate to make profit by producing output for which it needs to use various inputs.

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A: The rule 70 is an easy method of determining the time period required to double the Real GDP of the…

Q: County A & Country B both recorded an increase in real GDP of 5% per year from 1970 to 2005. During…

A: Country A increases real GDP by 5% per year. The population increased by 7% in country…

Q: indicators of change in economic activity that move concurrently with business activity is called?

A: There are various types of indicators of economic activity that represent various information about…

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A: To invest is to hold an asset or an item with the intention of creating income or capital…

Q: Assume that a country experiences a permanent increase in its saving rate. Which of the following…

A: A permanent increase in savings rate could impact various variables in the economy for long or short…

Q: he table given below reports the value of different economic variables of a country during a year.…

A: Answer:  Gross investment; gross investment is the sum of net investment and depreciation.…

Q: Since it is counted as investment, why doesn’t the purchase of earthmoving equipment from China by a…

A: GDP estimates the financial worth of conclusive labor and products — that is, those that are…