the marginal propensity to expend is .7. autonomous expenditures are $3,800. what is the level of equilibrium income in the economy?

Question

04-11-2022
Business

Answered

the marginal propensity to expend is .7. autonomous expenditures are $3,800. what is the level of equilibrium income in the economy?

Answer :

Other Questions

at the broadest level, the financial system moves the economy’s scarce resources from___

Antonio and mika have a monthly income of $10,000. they have monthly expenditures that total $5,000. what is true about their cash flow? a. they have a $5,000

erica is analyzing the shares of songatikamascompany. the company currently pays a dividend of $2.50. she believes the company has a new product that will resul

Erica is analyzing the shares of SongatikamasCompany. The Company currently pays a dividend of $2.50. She believes the company has a new product that will resul

only goods and services are included in the estimation of nominal gdp, the dollar value of output produced in an economy. T/F

Type the correct answer in the box. Spell all words correctly. Which act was enacted as a response to the rising level of unsecured consumer debt? the act was e

a market economy has several benefits, but it also has some drawbacks. what is one negative effect a market economy can produce? a. it creates extreme divisions

If joey were single and his taxable income was $9,800, how much would he pay in taxes each year?.

How does the u. S. Economy benefit from either transaction (the foreign purchase of u. S. Goods and services [exports] or the purchase of u. S. Assets)?.

Why is it important to draw a line up to the word DOLLARS when writing the amount of a check in words? a)Large letters are easier to read b)The bank will not ca

contexto1220 contexto1220 · Answer 1 · 2022-11-08T06:06:12-05:00

Equilibrium income in the economy is $5428.5

The marginal propensity to expend is the ratio of change in aggregate expenditure to change in income. It implies that change in income effects expenditure. The marginal propensity to consume implies a change in consumption due to a change in income.

The equilibrium level of the national income is defined as that point where the aggregate supply and the aggregate demand are equal to each other.

Marginal propensity to expend = 0.7

Autonomous expenditures = $3,800

Equilibrium income = ?

According to the formula,

MPC = dC / dY

Y = (Equilibrium income)

0.7 = 3800 / Y

Y = 3800 / 0.7

= 5428.5

For more information on Equilibrium income, visit :

https://brainly.com/question/13034122

#SPJ4