Use the information below to answer the questions below. C = 400 + 0.6Y I = 500 a. Calculate autonomous spending. b. Calculate the equilibrium level of income. c. Illustrate with the aid of a diagram the equilibrium level income calculated above

Use the information below to answer the questions below. C = 400 + 0.6Y I = 500 a. Calculate autonomous spending. b. Calculate the equilibrium level of income. c. Illustrate with the aid of a diagram the equilibrium level income calculated above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Use the information below to answer the questions below.

C = 400 + 0.6Y

I = 500

Calculate autonomous spending.

Calculate the equilibrium level of income.

Illustrate with the aid of a diagram the equilibrium level income

calculated above

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