subject
Mathematics, 29.03.2021 22:20 mirmir62

ADVANCED ANALYSIS Assume that the consumption schedule for a private closed economy is such that consumption is: C = 100 + 0.75Y

Assume further that planned investment Ig is independent of the level of real GDP and constant at Ig = 50. Recall also that, in equilibrium, the real output produced (Y) is equal to aggregate expenditures:

Y = C + Ig

Instructions: Enter your answers as whole numbers.

a. Calculate the equilibrium level of income or real GDP for this economy.

Equilibrium GDP (Y) = $
.

b. What happens to equilibrium GDP if Ig changes to 60?

Equilibrium GDP (Y) = $
.

What does this outcome reveal about the size of the spending multiplier?

Spending multiplier =
.

ansver
Answers: 2

Another question on Mathematics

question
Mathematics, 21.06.2019 14:00
6people equally share 56 gummy worms. how many gummy worms does each person get? nine and one sixth gummy worms nine and two sixths gummy worms ten and one sixth gummy worms ten and two eighths gummy worms
Answers: 1
question
Mathematics, 21.06.2019 14:00
The axis of symmetry for the graph of the function f(x)=1/4^2+bx +10 is x=6. what is the value of b?
Answers: 1
question
Mathematics, 21.06.2019 17:00
If a baby uses 15 diapers in 2 days, how many diapers will the baby use in a year?
Answers: 2
question
Mathematics, 21.06.2019 22:30
Which of the following is an example of a rational number? a. π b. √ 9 c. √ 8 d. 3.8362319
Answers: 1
You know the right answer?
ADVANCED ANALYSIS Assume that the consumption schedule for a private closed economy is such that con...
Questions
question
English, 05.09.2021 14:00
question
Mathematics, 05.09.2021 14:00
question
Mathematics, 05.09.2021 14:00
question
English, 05.09.2021 14:00
Questions on the website: 13722360