Question

Use the
information to answer the questions that follow:
C = 450 + 0.4Y
I = 350
G = 150
X = 70
Z = 35 + 0.1Y
T = 0.15Y
Yf = 1550
Q.2.1 Calculate the level of autonomous spending in this economy.

Answer 1

assuming that the economy is at equilibrium the imports = 0

Autonomous spending shall be = $c + I + G + NY$

$A0= 450 + 350+150= 950$