Assume that the marginal propensity to consume is 090 and, Ask an Expert

Economics

Assume that the marginal propensity to consume is 0.90 and autonomous consumption expenditures equal $100 billion. Further, assume that planned investment spending is $300 billion and government spending, taxes, and net exports are zero.

Equilibrium output equals ____________

If autonomous consumption expenditures drop by $50 billion to $50 billion, equilibrium output equals _________

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91844010

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