The economy of country B is characterized by the following: • Aggregate output: Y • Investment spending: I= 80 • Government spending: G= 90 • Net taxation: T= - 10 + 0.1Y • Disposable income: Y=Y -T • Consumption function: C= 30 +0.9Yd The equilibrium output for this economy is 1100 Round off your answer to two decimal places. If the marginal propensity to save (MPS) increases to 0.15, the equilibrium output will be Round off your answer to two decimal places.
The economy of country B is characterized by the following: • Aggregate output: Y • Investment spending: I= 80 • Government spending: G= 90 • Net taxation: T= - 10 + 0.1Y • Disposable income: Y=Y -T • Consumption function: C= 30 +0.9Yd The equilibrium output for this economy is 1100 Round off your answer to two decimal places. If the marginal propensity to save (MPS) increases to 0.15, the equilibrium output will be Round off your answer to two decimal places.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![The economy of country B is characterized by the following:
• Aggregate output: Y
• Investment spending: I= 80
• Government spending: G= 90
• Net taxation: T= - 10 + 0.1Y
• Disposable income: Y=Y -T
• Consumption function: C= 30 +0.9Yd
The equilibrium output for this economy is 1100
Round off your answer to two decimal places.
If the marginal propensity to save (MPS) increases to 0.15, the equilibrium output will be
Round off your answer to two decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F51429d23-75ef-4400-b399-dac785222d20%2F3c84bc45-8ffe-4099-908e-aa156ac81ee3%2Fvbzno1_processed.png&w=3840&q=75)
Transcribed Image Text:The economy of country B is characterized by the following:
• Aggregate output: Y
• Investment spending: I= 80
• Government spending: G= 90
• Net taxation: T= - 10 + 0.1Y
• Disposable income: Y=Y -T
• Consumption function: C= 30 +0.9Yd
The equilibrium output for this economy is 1100
Round off your answer to two decimal places.
If the marginal propensity to save (MPS) increases to 0.15, the equilibrium output will be
Round off your answer to two decimal places.
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