In Econland,autonomous consumption equals 200,the marginal propensity to consume equals 0.9,net taxes are equal to 100,planned private-sector investment is equal to 200,government purchases are equal to 300,and net exports are equal to 50.Induced planned aggregate expenditure equals _________.

Question

Quizplus · Accepted Answer

Induced planned aggregate expenditure is determined by the marginal propensity to consume (MPC) times the level of income (Y), which is 0.9Y in this case.

In Econland,autonomous Consumption Equals 200,the Marginal Propensity to Consume Equals