The table shows real GDP, Y, the components of planned expenditure, and aggregate planned expenditure (in millions of dollars) in an economy in which taxes are constant. Calculate the marginal propensity to consume and the marginal propensity to import. What is equilibrium expenditure? >>> Answer to 1 decimal place. The marginal propensity to consume is Planned expenditure Y C G X M AE 0 2.0 1.75 1.0 1.25 0.0 6.0 2 Q 1.75 1.0 1.25 0.4 6.8 4 4.4 1.75 1.0 1.25 0.8 7.6 6 5.6 1.75 1.0 1.25 1.2 8.4 8 6.8 1.75 1.0 1.25 1.6 9.2 10 8.0 1.75 1.0 1.25 U 10.0 12 9.2 1.75 1.0 1.25 2.4 V
The table shows real GDP, Y, the components of planned expenditure, and aggregate planned expenditure (in millions of dollars) in an economy in which taxes are constant. Calculate the marginal propensity to consume and the marginal propensity to import. What is equilibrium expenditure? >>> Answer to 1 decimal place. The marginal propensity to consume is Planned expenditure Y C G X M AE 0 2.0 1.75 1.0 1.25 0.0 6.0 2 Q 1.75 1.0 1.25 0.4 6.8 4 4.4 1.75 1.0 1.25 0.8 7.6 6 5.6 1.75 1.0 1.25 1.2 8.4 8 6.8 1.75 1.0 1.25 1.6 9.2 10 8.0 1.75 1.0 1.25 U 10.0 12 9.2 1.75 1.0 1.25 2.4 V
Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section: Chapter Questions
Problem 7TY
Related questions
Question
![The table shows real GDP, Y, the components of planned expenditure,
and aggregate planned expenditure (in millions of dollars) in an economy
in which taxes are constant.
Calculate the marginal propensity to consume and the marginal
propensity to import. What is equilibrium expenditure?
>>> Answer to 1 decimal place.
The marginal propensity to consume is
Planned expenditure
Y
C
G
X
M
AE
0
2.0
1.75 1.0 1.25
0.0
6.0
2
Q
1.75
1.0
1.25
0.4
6.8
4
4.4
1.75
1.0
1.25
0.8
7.6
6
5.6
1.75
1.0
1.25
1.2
8.4
8
6.8
1.75
1.0
1.25
1.6
9.2
10
8.0
1.75
1.0
1.25
U
10.0
12
9.2
1.75
1.0
1.25
2.4 V](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffa413bcf-f4d4-4563-8c5c-bfbbe2a7d62c%2F34146adf-f594-447e-a9e2-4c830ea1fdd0%2Fp7xpryo_processed.png&w=3840&q=75)
Transcribed Image Text:The table shows real GDP, Y, the components of planned expenditure,
and aggregate planned expenditure (in millions of dollars) in an economy
in which taxes are constant.
Calculate the marginal propensity to consume and the marginal
propensity to import. What is equilibrium expenditure?
>>> Answer to 1 decimal place.
The marginal propensity to consume is
Planned expenditure
Y
C
G
X
M
AE
0
2.0
1.75 1.0 1.25
0.0
6.0
2
Q
1.75
1.0
1.25
0.4
6.8
4
4.4
1.75
1.0
1.25
0.8
7.6
6
5.6
1.75
1.0
1.25
1.2
8.4
8
6.8
1.75
1.0
1.25
1.6
9.2
10
8.0
1.75
1.0
1.25
U
10.0
12
9.2
1.75
1.0
1.25
2.4 V
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