Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 36, Problem 4.2P
To determine
The best fits values in the given consumption functions.
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Refer to the information provided in Table 8.8 below to answer the questions that follow.
Table 8.8
Aggregate Output Aggregate Consumption Planned Investment
($ million)
3,000
4,000
5,000
6,000
7,000
($ million)
2,000
2,800
3,600
4,400
5,200
($ million)
1,600
1,600
1,600
1,600
1,600
Refer to Table 8.8. Which of the following statements is false?
Select one:
O a. The MPCfor this economy is o.8.
O b. lfaggregate output equals $4,00o million, then aggregate saving equals $1000 million.
c. At an output level of $3,000 million, there is a $600 million unplanned inventory decrease.
O d. At an output level $4,000 million, there is a $400 million unplanned inventory decrease.
Consider an economy that is characterized by the following equations:
C= 400 + 0.5 Yd
I = 700 - 4000i + 0.1y
G= 200
T= 200
(M/P)d
- = 0.75Y - 7500€
(MP)== 600
What is the equilibrium consumption (C)?
Consider an economy that is characterized by the following equations:
C= 400 + 0.5 Yd
I = 700 - 4000i + 0.1Y
G= 200
T= 200
(MP)d = 0.75Y - 7500;
(M/P)S = 600
What is the equilibrium investment (I)?
Chapter 36 Solutions
Principles of Economics (12th Edition)
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