You are given the following information about a model economy. The autonomous part of consumption is R100 billion. The marginal propensity to consume is equal to 0.8. Investment is R460 billion. Government purchases of goods and services are R400 billion. The tax rate is equal to 0.25. Imports are autonomous, and are equal to R347 billion, and exports are equal to R347 billion. The full employment level of income is estimated at R2 800 billion. The value of autonomous spending

You are given the following information about a model economy. The autonomous part of consumption is R100 billion. The marginal propensity to consume is equal to 0.8. Investment is R460 billion. Government purchases of goods and services are R400 billion. The tax rate is equal to 0.25. Imports are autonomous, and are equal to R347 billion, and exports are equal to R347 billion. The full employment level of income is estimated at R2 800 billion. The value of autonomous spending

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $1,540 million. Enter the amount for government purchases. National Income Account Value (Millions of dollars) Government Purchases (GG) Taxes minus Transfer Payments (TT) 455 Consumption (CC) 700 Investment (II) 490 Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table. National Saving (S)National Saving (S) = = (y-t-g, g-t, y-c, y-c-g) = = (C,G,Y,I) $ ______million
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