You are given the following information about a closed economy with no government: Consumption = 115 + 0.6Y Investment = 550 Use the above information to answer the questions that follow:
Q.4.1 Calculate the value of autonomous spending. (3)
Q.4.2 Calculate the value of the multiplier. (3)
Q.4.3 Calculate the equilibrium level of income. (3)
Q.4.4 Is the equilibrium level of income also the full employment level of income? Explain your answer. (3)
Q.4.5 Identify any three non‐income determinants of consumption. (3)
1
Expert's answer
2020-09-16T14:30:40-0400
Dear lesego, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order
Comments
Leave a comment