Suppose the aggregate consumption function is represented by C = £1,000 + 0.5*YD, where YD is disposable income, and there are no taxes or transfers. Using the income-expenditure model, what increase in autonomous consumption must occur for equilibrium output to increase by £1,000? Select one: a. £200 b. £500 c. £100 d. £250

Suppose the aggregate consumption function is represented by C = £1,000 + 0.5*YD, where YD is disposable income, and there are no taxes or transfers. Using the income-expenditure model, what increase in autonomous consumption must occur for equilibrium output to increase by £1,000? Select one: a. £200 b. £500 c. £100 d. £250

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 15E

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