1. Given the following table. Income (RM million) Consumption (RM million 100 100 150 200 200 300 250 400 300 500 350 a. How much is the autonomous consumption in the economy? b. How much investment should be increased to achieve an income of RM400 mi c. Calculate the MPS. d. Derive the consumption function.
1. Given the following table. Income (RM million) Consumption (RM million 100 100 150 200 200 300 250 400 300 500 350 a. How much is the autonomous consumption in the economy? b. How much investment should be increased to achieve an income of RM400 mi c. Calculate the MPS. d. Derive the consumption function.
Chapter9: Aggregate Expenditures
Section: Chapter Questions
Problem 7E
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Question
Question 1 a and d(with formula)
![STRUCTURED QUESTIONS
1.
Given the following table.
Income (RM million)
Consumption (RM
million
100
100
150
200
200
300
250
400
300
500
350
a. How much is the autonomous consumption in the economy?
b. How much investment should be increased to achieve an income of RM400 million?
C. Calculate the MPS
d. Derive the consumption function
2.
Given the following information,
C=500 + 0.7Yd
T=02Y
13D400
G-100
РОСО
SHOT ON POCO F2 PROe the national income equilibrium.
b. Based on your answer in (a), draw the aggregate expenditure graph.
300 what would happen to the national income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95f70768-81a1-4bf6-a1f6-73b0d3da9277%2F14788374-8731-42d5-9049-2609a897b557%2Fngmz20w_processed.jpeg&w=3840&q=75)
Transcribed Image Text:STRUCTURED QUESTIONS
1.
Given the following table.
Income (RM million)
Consumption (RM
million
100
100
150
200
200
300
250
400
300
500
350
a. How much is the autonomous consumption in the economy?
b. How much investment should be increased to achieve an income of RM400 million?
C. Calculate the MPS
d. Derive the consumption function
2.
Given the following information,
C=500 + 0.7Yd
T=02Y
13D400
G-100
РОСО
SHOT ON POCO F2 PROe the national income equilibrium.
b. Based on your answer in (a), draw the aggregate expenditure graph.
300 what would happen to the national income
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