ven the following consumption function, C = 400 + 0.75YD, where C= consumption expenditure, YD = disposable income, Investment= $1200, Government spending = $1600,Exports = $500, Imports = $600, Taxes = $1200 and Potential GDP = $9000 Aactual output is less than potential output actual output is zero actual output is equal to potential output actual output is higher than potential outpu

MACROECONOMICS FOR TODAY
10th Edition
ISBN:9781337613057
Author:Tucker
Publisher:Tucker
Chapter9: The Keynesian Model In Action
Section: Chapter Questions
Problem 5SQP
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Given the following consumption function, C = 400 + 0.75YD,
where C= consumption expenditure, YD = disposable income, Investment= $1200, Government spending = $1600,Exports = $500, Imports = $600, Taxes = $1200 and Potential GDP = $9000

Aactual output is less than potential output
actual output is zero
actual output is equal to potential output
actual output is higher than potential output

Given the following consumption function, C = 400 + 0.75YD,
where C= consumption expenditure, YD = disposable income, Investment= $1200, Government spending = $1600,
Exports = $500, Imports = $600, Taxes = $1200 and Potential GDP = $9000
Select one from the following options.
actual output is less than potential output
actual output is zero
actual output is equal to potential output
actual output is higher than potential output
8.
Transcribed Image Text:Given the following consumption function, C = 400 + 0.75YD, where C= consumption expenditure, YD = disposable income, Investment= $1200, Government spending = $1600, Exports = $500, Imports = $600, Taxes = $1200 and Potential GDP = $9000 Select one from the following options. actual output is less than potential output actual output is zero actual output is equal to potential output actual output is higher than potential output 8.
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