Sup suppose the level of autonomous investment in an economy is 2,000 shillings and the consumption function is c=800 +0.25Y find the equilibrium levels     What will be the increase in national income if the investment increases by 250   Suppose that the level of planned investment is to the ceilings and the saving function is given by S=-800 + 0.25Y ,find the equilibrium levels of income

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A: Aggregate income is the sum total of all the incomes in an economy without adjustments.  As given in…

Q: Given a consumption function, C = c0 + cY, specified such that the marginal propensity to consume is…

A: The objective of the question is to calculate the consumption expenditure given the consumption…

Q: Consider an economy with an autonomous consumption of $4 million, a marginal propensity to consume…

A: According to neoclassical economists, the ultimate goal of economic activity is consumption, so, per…

Q: The following are exogenous (not directly affected by income): G = 9 I = 14 X = M = 0 The…

A: Given, C = 8 + 0.6Y, G = 9                   I = 14          X = M = 0

Q: Assume a closed economy where Qproduced=Qconsumed. Given the production functions: x1=L1^0.43 and…

A: *Answer:

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Q: The slope of the consumption function is positive and equals 1-MPC True False

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Q: What is the level of saving if: The MPC equals .9, disposable income rises from $ 800 to $ 900, and…

A: The marginal propensity of consumption and savings is the proportion of the disposable income that…

Q: In an economy, consumers spend 800 million regardless of their level of disposable income. In…

A: Meaning of Aggregate Demand Function: The effective elements in the determination of the level of…

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Q: 13 of 25 Given the following information of a closed economy Saving = -50 + 0.25 Yd. Investment =…

A: This will be explained below:

Q: Given the following data for a closed economy |= 3400 Planned Investment G=4000 Government Spending…

A: A way of measuring the economic wellbeing of a nation, the GDP is the amalgamation of all the values…

Q: Question. Suppose in an economy, autonomous investment (1) is $ 600 crores and the following…

A: Answer:   Hence income i.e I = 600

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A: In an economy; Autonomous consumption expenditure= 500 billion Every time Y increases by 1 billion…

Q: Assume autonomous consumption is Gh¢ 400 million, autonomous investment is Gh¢ 300 million and…

A: i.) Equilibrium national income: Equilibrium national income can be calculated as follows: Thus,…

Q: by equa a. Suppose the government increases both taxes (7) and government purchase (Y) is fixed by…

A: The Marginal Propensity to Consume (MPC) is a concept in economics that represents the proportion of…

Q: If the consumption function in the economy is given as C = 400 + 0.6(Yd), what is the MPS? a. 0.6…

A: MPC = coefficient of Yd = 0.6 MPS = 1 - MPC = 1 - 0.6 = 0.4

Q: Assume taxes are zero and an economy has a consumption function of C = 0.80 (Yd) + $879.06. How…

A: The consumption function depicts the relationship among the disposable income and consumption; while…

Q: The consumption function is given by: C = 200+0.75 (Y-T). The investment  function  is I = 200-25r.…

A: IS curve refers to the investment savings curve.

Q: Consider the Savings-Investment model involving: The Savings function: S = S0+s1Y+s2r; and the…

A: Equilibrium occurs at a point where : AD = AS  C + I = C + S  Cancelling C from both sides we get ,…

Q: Consider the Savings-Investment model involving: The Savings function: S = S0+s1Y+s2r; and the…

A: S=S0+s1Y+s2r I=I0+ir (i) Equilibrium occurs when Savings equal Investment: S=I S0+s1Y+s2r=I0+ir…

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A: Under intertemporal hypothesis person earns money in his working age and consume that money in his…

Q: Suppose in a simple Keynesian economy, planned consumption function is given by C=250+0.65(Y-T).…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: 1. Consider an economy where the production function takes the form Y = z(N + K), where N is labor…

A: ExplanationAxes:X-axis (Leisure): Represents the quantity of leisure (l). Leisure is essentially the…

Q: If the consumption function is given by C = 6 + 31 determine the 3 %3D 4 marginal propensity to…

A: Given consumption function C=6+3I4-I3                   .......(1) We have to find value of MPC and…

Q: A country is closed. It has no government sector, and its aggregate price levels and interest rates…

A: The equation Y = C + I + G + NX tells us that aggregate output (or aggregate income) is equal to…

Q: Given consumption function C = 0.6Y + 35 1) Find the equilibrium level of income Y for the planned…

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Q: Given this diagram of Consumption and Savings functions, What is the level of Ca (autonomous…

A: The consumption function represents the relationship between consumption expenditure and its…

Q: 7. If the consumption function is given by C = 0.62Y + 50 state the values of (a) autonomous…

A: Here, consumption function is given as: C=0.62Y+50 Where, C is consumption and Y is income.

Q: Consider the Savings-Investment model involving: The Savings function: S = S0+s1Y+s2r; and the…

A: We are going to solve tow linear equations to find equilibrium GDP, Y* to answer this question.

Q: Suppose output and income is equal to 22400, the marginal propensity to consume is 0.60, and…

A: In the absence of the public sector and foreign sector Y=C+I At equilibrium the saving is equal to…

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A: Formula: EQUILIBRIUM LEVEL OF INCOME (Y) = CONSUMPTION + INVESTMENT Y = C + I Consumption here is…

Q: Q.3 Suppose that the consumption function is defined as C=a+b(1-k)Y-bT where a-bT =0 and both…

A: In the given consumption function, values of a, b, k and T-bar are exogenously given. Values of C…

Q: Given consumption function C = 0.6Y + 35 1) Find the equilibrium level of income Y for the planned…

A: Equilibrium level of income can be found by using this formula,  Y = C + I

Q: Given consumption function C = 0.6Y + 35 1) Find the equilibrium level of income Y for the planned…

A: Equilibrium level of income Y = C + I

Q: Suppose that John's MPC is constant at 4/5. If he had no income at all, he would have to borrow…

A: The marginal propensity to consume (MPC) is a concept in economics that refers to how much of a…

Q: If the consumption function is C 100 +0.8and planned investment spending is 200 what is the…

A: The consumption function describes a relationship between consumption and disposable income. here we…

Q: 50 cores CO sumption

A: Equilibrium,  Saving function = Investment function