S assume that in the model of national economy household consumption is C= 300 + 0.9*DI, companies' gross estment is Ig = 200, but government expenses are G= 250, while the sum of taxes collected by the government is - 150. Taking into account that disposable income DI = Y-T, calculate: a) Equilibrium level of income Y; b) Calculate the value of Marginal propensity to consume and value of Marginal propensity to save; c) Private consumption at macroeconomic equilibrium; d) Develop equation of saving and calculate amount of saving at the point of equilibrium level of income. %3D

S assume that in the model of national economy household consumption is C= 300 + 0.9*DI, companies' gross estment is Ig = 200, but government expenses are G= 250, while the sum of taxes collected by the government is - 150. Taking into account that disposable income DI = Y-T, calculate: a) Equilibrium level of income Y; b) Calculate the value of Marginal propensity to consume and value of Marginal propensity to save; c) Private consumption at macroeconomic equilibrium; d) Develop equation of saving and calculate amount of saving at the point of equilibrium level of income. %3D

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter18: The Keynesian Model

Section: Chapter Questions

Problem 9SQP

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