You are given the following information about a closed economy with no government: Consumption = 445 + 0.75Y Investment = 250 Use the above information to answer the questions that follow: Q.4.1 Calculate the value of autonomous spending. (2) Q.4.2 Calculate the value of the multiplier. (3) Q.4.3 Calculate the equilibrium level of income. (3) Q.4.4 Clearly explain the characteristics of the consumption function. (6) Q.4.5 What is the main determinant of the level of investment
You are given the following information about a closed economy with no government: Consumption = 445 + 0.75Y Investment = 250 Use the above information to answer the questions that follow: Q.4.1 Calculate the value of autonomous spending. (2) Q.4.2 Calculate the value of the multiplier. (3) Q.4.3 Calculate the equilibrium level of income. (3) Q.4.4 Clearly explain the characteristics of the consumption function. (6) Q.4.5 What is the main determinant of the level of investment
Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section9.A: The Simple Algebra Of Income Determination And The Multiplier
Problem 4TY
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You are given the following information about a closed economy with no government: Consumption = 445 + 0.75Y Investment = 250 Use the above information to answer the questions that follow:
Q.4.1 Calculate the value of autonomous spending. (2)
Q.4.2 Calculate the value of the multiplier. (3)
Q.4.3 Calculate the equilibrium level of income. (3)
Q.4.4 Clearly explain the characteristics of the consumption function. (6)
Q.4.5 What is the main determinant of the level of investment
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