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 the equilibrium national income in this economy?
A)$1470.59
B)$3125.00
C)$1975.00
D)$5000.00
E)$6171.87

Question

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 the equilibrium national income in this economy?
A)$1470.59 
B)$3125.00 
C)$1975.00 
D)$5000.00 
E)$6171.87

Quizplus · Accepted Answer

The Answer of 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 the equilibrium national income in this economy?
A)$1470.59 
B)$3125.00 
C)$1975.00 
D)$5000.00 
E)$6171.87

The Diagram Below Shows Desired Aggregate Expenditure for a Hypothetical