You are given the following information about a model economy. The autonomous part of consumption is R100 billion. The marginal propensity to consume is equal to 0.8. Investment is R460 billion. Government purchases of goods and services are R400 billion. The tax rate is equal to 0.25. Imports are autonomous, and are equal to R347 billion, and exports are equal to R347 billion. The full employment level of income is estimated at R2 800 billion. The value of autonomous spending

You are given the following information about a model economy. The autonomous part of consumption is R100 billion. The marginal propensity to consume is equal to 0.8. Investment is R460 billion. Government purchases of goods and services are R400 billion. The tax rate is equal to 0.25. Imports are autonomous, and are equal to R347 billion, and exports are equal to R347 billion. The full employment level of income is estimated at R2 800 billion. The value of autonomous spending

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 4.8P

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