Suppose that a closed economy with no government has the

Reference no: EM13378771

Suppose that a closed economy with no government has the following consumption-income scheduleIncome (in million $) Consumption Expenditure (in million $) 55,000 53,500 57,000 54,700 59,000 55,900 Furthermore, the autonomous consumption is equal to Php16,000, exogenous investment is Php700,000 and exogenous government expenditure is Php650,000.

a. Find MPS (marginal propensity to save), MPC (marginal propensity to consume) and the multiplier.

b. What is the break-even level of income?

c. Would you consider the break-even point as the equilibrium point? Why or why not?

Reference no: EM13378771

Questions Cloud

1 a whoey option pays the difference between the final : 1 a whoey option pays the difference between the final price and the maximum price of a stock over the period of the

Find the following values for a single cash flowa the : find the following values for a single cash flowa the future value of 500 invested at 8 percent for one yearb the

Recently the owner of a trader joes franchise decided to : recently the owner of a trader joes franchise decided to change how she compensated her top manager. last year she paid

Consider that an entrants ability to enter a market is : consider that an entrants ability to enter a market is fought with the possibility of withdrawing from the industry at

Suppose that a closed economy with no government has the : suppose that a closed economy with no government has the following consumption-income scheduleincome in million

Find an article from the media internet newspapers : find an article from the media internet newspapers magazines etc. on a current event that addresses an economic concept

Tish discovered that her garage actually sits over the : tish discovered that her garage actually sits over the property line and is two feet onto the property of her neighbor.

In the derivation of the solow growth model we assumed that : in the derivation of the solow growth model we assumed that government spending and taxes less transfers were both

Ross and jennifer are the only ones who eat donuts every : ross and jennifer are the only ones who eat donuts every morning at second cup. so they constitute entire market for

User Account

All Pages