Question 5 The following information is provided for a hypothetical economy: fixed price level autonomous desired invest

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Question 5 The Following Information Is Provided For A Hypothetical Economy Fixed Price Level Autonomous Desired Invest 1 (68.16 KiB) Viewed 15 times

Question 5 The following information is provided for a hypothetical economy: fixed price level autonomous desired investment (I) of 50 billion marginal propensity to imports of 8 percent autonomous government purchases (G) of $70 billion. autonomous desired consumption (C) of $6 billion marginal propensity to consume out of disposable income of 0.70 autonomous desired exports (X) of $14 billion net tax rate of 2.5 percent of national income 5.1 Write an equation expressing consumption as a function of disposable income. 5.2 Write an equation expressing net tax revenues as a function of national income. 5.3 Write an equation expressing disposable income as a function of national income. 5.4 Write an equation expressing consumption as a function of national income. 5.5 Write an equation expressing imports as a function of national income. 5.6 Write an equation expressing the aggregate expenditure function as a function of national income. 5.7 What is the marginal propensity to spend out of national income? 5.8 Calculate the magnitude of the multiplier for the entire economy. 5.9 Calculate the equilibrium point of national income for this economy.