Business, 21.03.2020 05:35 gaby4567

Income

(Yd)

Consumption

Expenditure

Saving

Investment

Expenditure

Government

Expenditure

Net Export

Expenditure

Aggregate

Expenditure

$8000

$11,000

$2,500

$5,000

$12,500

12,000

14,000

2,500

5,000

12,500

20,000

20,000

2,500

5,000

12,500

30,000

27,500

2,500

5,000

12,500

50,000

42,500

2,500

5,000

12,500

100,000

80,000

2,500

5,000

12,500

1.Calculate savings, autonomous consumption, MPC, MPS, break even income, and the equilibrium level of income (Y = AE = C + I + G + NX) in the above given information.

2. Draw a graph showing disposable income (Yd) on the horizontal axis and aggregate expenditures (AE) on the vertical axis with a 45 degree line. Graph consumption curve (CC) and AE (AE = C + I) curve on this graph. Indicate equilibrium level of income on this graph.

Answers: 3

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