Suppose the economy is four sectors economy. The economy is represented by the following: C= 400 + 0.40Yª G= 40 I 25 T-5 NX =- 25 where; C= Consumption G=Government Expenditure I= Investment T= Tax NX = Net Exports From the information above, calculate and sketch the diagram showing the equilibrium level of income. i. From the information above, calculate the level of consumption and saving that occurs at the equilibrium level of income. ii.
Suppose the economy is four sectors economy. The economy is represented by the following: C= 400 + 0.40Yª G= 40 I 25 T-5 NX =- 25 where; C= Consumption G=Government Expenditure I= Investment T= Tax NX = Net Exports From the information above, calculate and sketch the diagram showing the equilibrium level of income. i. From the information above, calculate the level of consumption and saving that occurs at the equilibrium level of income. ii.
Chapter1: Making Economics Decisions
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![1 List Para. 1 No Spac. E
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Suppose the economy is four sectors economy. The economy is represented by the following:
C= 400 + 0.40Yd
G= 40
I= 25
T= 5
NX =- 25
where;
C= Consumption
G=Government Expenditure
I= Investment
T= Tax
NX = Net Exports
i.
From the information above, calculate and sketch the diagram showing the
equilibrium level of income.
From the information above, calculate the level of consumption and saving that
occurs at the equilibrium level of income.
1i.
ENG
- (United States)
G Accessibility: Investigate
US
(hp](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18dcc9a1-cce2-41ca-9215-c0a34a04d5ef%2F95c55f1d-5ffa-472e-bcb6-c0b06d1f5ed4%2Fhd28tvb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1 List Para. 1 No Spac. E
Create and Share Requ
A Select -
Paragraph
Adobe PDF
Signat
Styles
Editing
Adobe Acrobat
Suppose the economy is four sectors economy. The economy is represented by the following:
C= 400 + 0.40Yd
G= 40
I= 25
T= 5
NX =- 25
where;
C= Consumption
G=Government Expenditure
I= Investment
T= Tax
NX = Net Exports
i.
From the information above, calculate and sketch the diagram showing the
equilibrium level of income.
From the information above, calculate the level of consumption and saving that
occurs at the equilibrium level of income.
1i.
ENG
- (United States)
G Accessibility: Investigate
US
(hp
![iii.
Suppose that imports decreases by 10 and the other components remain, calculate
the new equilibrium level of income.
Will the level of saving and consumption change as the economy adjusts to this
change in imports? Explain.
iv.
E Accessibility: Investigate
hp](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18dcc9a1-cce2-41ca-9215-c0a34a04d5ef%2F95c55f1d-5ffa-472e-bcb6-c0b06d1f5ed4%2F1u6cl89_processed.jpeg&w=3840&q=75)
Transcribed Image Text:iii.
Suppose that imports decreases by 10 and the other components remain, calculate
the new equilibrium level of income.
Will the level of saving and consumption change as the economy adjusts to this
change in imports? Explain.
iv.
E Accessibility: Investigate
hp
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