Autonomous Consumption R535m Marginal propensity to consume is 0.75 Investment Spending R322m Government Spending R300m Imports R175m + 0.08Y Exports R283m Taxes = 0.1Y Full employment level of output is R3 483m Calculate the equilibrium level of income in this economy.

Autonomous Consumption R535m Marginal propensity to consume is 0.75 Investment Spending R322m Government Spending R300m Imports R175m + 0.08Y Exports R283m Taxes = 0.1Y Full employment level of output is R3 483m Calculate the equilibrium level of income in this economy.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

ChapterD: The Expenditure-output Model

Section: Chapter Questions

Problem 24CTQ: Exercise D24 Compare two policies: a tax cut on income or an increase in government spending on...

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Question

_{Autonomous Consumption R535m
Marginal propensity to consume is 0.75
Investment Spending R322m
Government Spending R300m
Imports R175m + 0.08Y
Exports R283m
Taxes = 0.1Y
Full employment level of output is R3 483m}

_{Calculate the equilibrium level of income in this economy.}

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