User Account

All Pages

Calculate the level of autonomous spending

Assignment Help Business Economics
Reference no: EM132639158

The information below relates to a closed economy without a government.

Use the information to answer the questions that follow:

  • Autonomous consumption = R285 million;
    Autonomous investment = R300 million;
    Marginal propensity to consume = 0.4.
    Q.4.1 Calculate the level of autonomous spending.
    Q.4.2 Calculate the size of the multiplier.
    Q.4.3 Calculate the equilibrium level of income.
    Q.4.4 Suppose that the equilibrium level of income is 1 000 and it is below the full employment level of income of 1200. Calculate the change in investment spending required to reach full employment.
    Q.4.5 Discuss the relationship between total income and total spending in the macroeconomy according to Say's law.

Reference no: EM132639158

Questions Cloud

What should the adjusting journal entry : Prepaid rent has a balance of $6,000 that was paid on July 1st for 6 months of rent. The date is now August 31st. What should the adjusting journal entry
Describe the human resource management process : Take a moment to reflect on your knowledge of human resource management prior to taking this course and on what you have learned during the 10 weeks.
Design two logos for this anti-racism campaign : Design two logos for this anti-racism campaign. One logo should be designed for U.S. audiences, and the other should be designed for the other country
What is the initial cost of the trademark : Research expenditures associated with the purchase of the new trademark 240,000. What is the initial cost of the trademark
Calculate the level of autonomous spending : The information below relates to a closed economy without a government. Use the information to answer the questions that follow:
What qualities can help white people be effective allies : Guilt and white privilege, these activists say, can sometimes get in the way of white people being effective allies in the struggle against racism.
Prepare a unadjusted Trial Balance for Oliver Inc : Prepare journal entries to record the following transactions during the month of September, 2020, then prepare a unadjusted Trial Balance for Oliver, Inc
How about the expected return to equity owners : How about the expected return to equity owners, re? How does the risk of their respective returns vary with a?
What amount of pretax gain : Counsel is unable to estimate the outcome of these appeals. In its 20x9 financial statements, Haze should report what amount of pretax gain

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd