Use the following information on economy X to answer the questions below. Consumption function: C = 250 + 0.8Y Investment spending: I = 150 Government spending: G = 500 Exports of goods and services: X = 200 Imports of goods and services: Z = 150 Proportional tax rate: t =25% Full employment level of income = 3575 Q.4.1.1 Calculate total autonomus spending for economy X. Q.4.1.2 Calculate the multiplier for economy X. Q.4.1.3 Calculate the equilibrium income for the economy.
Use the following information on economy X to answer the questions below. Consumption function: C = 250 + 0.8Y Investment spending: I = 150 Government spending: G = 500 Exports of goods and services: X = 200 Imports of goods and services: Z = 150 Proportional tax rate: t =25% Full employment level of income = 3575 Q.4.1.1 Calculate total autonomus spending for economy X. Q.4.1.2 Calculate the multiplier for economy X. Q.4.1.3 Calculate the equilibrium income for the economy.
Chapter1: Making Economics Decisions
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![Q.4.1
Use the following information on economy X to answer the questions below.
Consumption function: C = 250 + 0.8Y
Investment spending: I = 150
Government spending: G = 500
Exports of goods and services: X = 200
Imports of goods and services: Z = 150
Proportional tax rate: t =25%
Full employment level of income = 3575
Q.4.1.1
Calculate total autonomus spending for economy X.
Q.4.1.2
Calculate the multiplier for economy X.
Q.4.1.3
Calculate the equilibrium income for the economy.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F894aee3d-17ec-4e05-bbb6-66037cae9fa1%2F1fc1f366-a0bc-43e9-b61b-203c8d216ded%2Fby03qvs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q.4.1
Use the following information on economy X to answer the questions below.
Consumption function: C = 250 + 0.8Y
Investment spending: I = 150
Government spending: G = 500
Exports of goods and services: X = 200
Imports of goods and services: Z = 150
Proportional tax rate: t =25%
Full employment level of income = 3575
Q.4.1.1
Calculate total autonomus spending for economy X.
Q.4.1.2
Calculate the multiplier for economy X.
Q.4.1.3
Calculate the equilibrium income for the economy.
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