Study the scenario and complete the question(s) that follow(s): Silesia You are provided with the following information about an imaginary economy called Silesia. Use the information provided in the table to answer the questions below. Government expenditure 400 Exports 250 Autonomous imports 50 Autonomous consumption 150 Investment Expenditure 300 Full-employment output 2040 Marginal propensity to consume 0.75 Marginal propensity to import 0.15 Таx rate 0.25 5.1 Derive and calculate the consumption function for the data provided. Show all formulas and calculations used. 5.2 Calculate autonomous spending. Show all formulas and calculations used. 5.3 Calculate the multiplier. Show all formulas and calculations used. Round off your final answer to 1 decimal. 5.4 Calculate the equilibrium level of income, using the values calculated in 5.2 and 5.3 above. Show all formulas and calculations used. 5.5 Calculate the government surplus or deficit at the equilibrium level of income. Show all formulas and calculations used. 5.6 Calculate the level of investment needed to reach the full employment level of output. Show all formulas and calculations used.
Study the scenario and complete the question(s) that follow(s): Silesia You are provided with the following information about an imaginary economy called Silesia. Use the information provided in the table to answer the questions below. Government expenditure 400 Exports 250 Autonomous imports 50 Autonomous consumption 150 Investment Expenditure 300 Full-employment output 2040 Marginal propensity to consume 0.75 Marginal propensity to import 0.15 Таx rate 0.25 5.1 Derive and calculate the consumption function for the data provided. Show all formulas and calculations used. 5.2 Calculate autonomous spending. Show all formulas and calculations used. 5.3 Calculate the multiplier. Show all formulas and calculations used. Round off your final answer to 1 decimal. 5.4 Calculate the equilibrium level of income, using the values calculated in 5.2 and 5.3 above. Show all formulas and calculations used. 5.5 Calculate the government surplus or deficit at the equilibrium level of income. Show all formulas and calculations used. 5.6 Calculate the level of investment needed to reach the full employment level of output. Show all formulas and calculations used.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:Study the scenario and complete the question(s) that follow(s):
Silesia
You are provided with the following information about an imaginary economy called Silesia. Use the
information provided in the table to answer the questions below.
Government expenditure
400
Exports
250
Autonomous imports
50
Autonomous consumption
150
Investment Expenditure
300
Full-employment output
2040
Marginal propensity to consume
0.75
Marginal propensity to import
0.15
Таx rate
0.25
5.1
Derive and calculate the consumption function for the data provided. Show all formulas and
calculations used.
5.2 Calculate autonomous spending. Show all formulas and calculations used.
5.3
Calculate the multiplier. Show all formulas and calculations used. Round off your final
answer to 1 decimal.
5.4 Calculate the equilibrium level of income, using the values calculated in 5.2 and 5.3 above.
Show all formulas and calculations used.
5.5 Calculate the government surplus or deficit at the equilibrium level of income. Show all
formulas and calculations used.
5.6 Calculate the level of investment needed to reach the full employment level of output. Show
all formulas and calculations used.
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