The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy:
∙ marginal propensity to consume (mpc) = 0.80
∙ net tax rate (t) = 0.15
∙ no foreign trade
∙ fixed price level
∙ all expenditure and income figures are in billions of dollars.
FIGURE 22-3
-Refer to Figure 22-3.What is total autonomous expenditure?
A) $300
B) $325
C) $650
D) $1000
E) $1975
Correct Answer:
Verified
Q61: Consider the simplest macro model with demand-determined
Q66: Consider the simplest macro model with a
Q66: The diagram below shows desired aggregate expenditure
Q67: Q67: Consider the simplest macro model with demand-determined Q69: The diagram below shows desired aggregate expenditure Q71: Consider a simple macro model with a Q72: The diagram below shows desired aggregate expenditure Q73: The diagram below shows desired aggregate expenditure Q75: The diagram below shows desired aggregate expenditure![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents