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04-24-2008, 11:05 AM
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| macro economics question please help solve a-f. urgent? in an economy with no exports or imports, autonomous consumption is $1 trillion, the marginal propensity to consume is .08, investment is $5 trillion and government expenditure is $4 trillion. Taxes are $4 trillion and do not vary with real GDP. a. Calculate disposable income when real GDP is $30 trillion. b. Calculate consumption expenditure when real GDP is $30 trillion. c. Calculate aggregate planned expenditure when real GDP is $30 trillion. d. Calculate equilibrium expenditure. e. If real GDP is $30 Trillion, explain the process that takes the economy to equilibrium expenditure. f. If real GDP is $40 trillion, explain the process that takes the economy to equilibrium expenditure.      |
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