Answer to Question #109938 in Macroeconomics for Kg

Question

A The equilibrium level of income is 17000m.The full employment income is 22000m and the marginal propensity to consume is 0,8.By how much should the investment expenditure change to bring national income to full employment equilibrium?
1. R1 000m
2. R1 000m
3. R4 000m
4. R5 000m
B. C= 100+0,80Y, what is the following savings function in the simple Keynesian model?
1. S= -100+0,20Y
2. S= 100+0,20Y
3. 0,20
4. 5
C. Which of the following statements is correct about the 45-degree line?
1. A negative relationship exist between aggregate spending and aggregate income
2. At any point above the 45-degree line, there is excess supply of goods and services
3. When aggregate spending than total production, firms experience an unplanned increase in their inventories and respond by lowering their production
4. The 45 -degree line shows the equality between the variable measured on the vertical axis and the variable measured on the horizontal axis

Answer 1

А 3

B 1

C 4