The autonomous consumption expenditures and autonomous investment expenditures in an economy are $400 and $300, respecti

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The Autonomous Consumption Expenditures And Autonomous Investment Expenditures In An Economy Are 400 And 300 Respecti 1 (116.42 KiB) Viewed 106 times

The options for blank #1 are falling and
rising.
The options for blank #2 are reduce and
increase.
The autonomous consumption expenditures and autonomous investment expenditures in an economy are $400 and $300, respectively. It is also observed that individuals spend 80% of their additional income on consumption. Write down the consumption function for this economy using the information provided above. (Round your response for the intercept term to the nearest whole number and for the slope term to one decimal place.) C = 400 + 0.8 Y Write down the aggregate expenditure function for this economy using the information provided above. (Round your response for the intercept term to the nearest whole number and for the slope term to one decimal place.) AE = 700 + 0.8 Y The equilibrium income that would set the actual national income to the desired aggregate expenditure is $ 3500 . (Round your response to the nearest dollar.) and firms would If the actual national income were $1,750 in this economy, then the inventories of the firms would be their output.