suppose that autonomous consumption is $400
Investment = I(r) = 200 - 10r Autonomous Government Spending = G = 100 Autonomous Taxes = Tx = 50 Autonomous Exports= X = 200 Autonomous Imports = IM = 175 r = 10 percent. Perfect Competition: Definition, Characteristics & Examples the equilibrium level of aggregate output to ________, everything else If total consumption equal $800, then autonomous consumption is equal toEverything else held constant, if total consumption increases from $600 to $800 because of an increase of disposable income of $400, then the mpc is equal toEverything else held constant, if consumption expenditure increases by 65 for a 100 increase in disposable income, the mpc isEverything else held constant, if disposable income increases by 200 and consumption expenditure increases by 150, the mpc isEverything else held constant, if consumption expenditure falls by 160 when disposable income falls by 200, the mpc isa new physical asset such as a new machine or a new housePlanned investment spending, a component of aggregate demand, is equal toThere are two types of investment: ________ investment—the spending by business firms on equipment and structures, and planned spending on residential houses—and ________ investment—spending by business firms on additional holdings of raw materials, parts, and finished goods.A fall in inventories is synonymous with ________ investment.A difference between inventory investment and fixed investment is thatKeynes mentioned two factors that influenced planned investment spending:interest rates and business expectations about the futureFactors that influenced planned investment spending include:all of the above (real interest rates, financial frictions, emotional waves of optimism and pessimism)Aggregate demand in an economy with no government or foreign trade isIf unplanned investment is positive, firms will ________ production and output will ________.If unplanned investment is negative, firms will ________ production and output will ________.In the Keynesian framework, as long as output is below the equilibrium level, unplanned inventory investment will remain ________ and firms will continue to ________ production.In the Keynesian framework, as long as output is ________ the equilibrium level, unplanned inventory investment will remain ________ and firms will continue to raise production.In the Keynesian framework, as long as output is ________ the equilibrium level, unplanned inventory investment will remain ________ and firms will continue to lower production.In the Keynesian framework, as long as output is ________ the equilibrium level, unplanned inventory investment will remain positive and firms will continue to ________ production.In the Keynesian framework, as long as output is above the equilibrium level, unplanned inventory investment will remain ________ and firms will continue to ________ production.In the Keynesian framework, as long as output is ________ the equilibrium level, unplanned inventory investment will remain negative and firms will continue to ________ production.In the Keynesian framework, as long as output is below the equilibrium level, unplanned inventory investment will remain negative, firms will continue to ________ production, and output will continue to ________.In the Keynesian framework, as long as output is ________ the equilibrium level, unplanned inventory investment will remain ________, firms will continue to raise production, and output will continue to rise.In the Keynesian framework, as long as output is ________ the equilibrium level, unplanned inventory investment will remain ________, firms will continue to lower production, and output will continue to fall.An increase in unplanned inventory investment for the entire economy equals the excess ofA decrease in unplanned inventory investment for the entire economy equals the excess ofIf aggregate demand is less than the level of aggregate output, then ________ inventory investment will be ________.If aggregate demand falls short of current output, business firms will ________ production to ________ inventories.If aggregated demand is less than actual output, unplanned inventory ________ will cause output to ________.If actual output is less than equilibrium output, firms will ________ output to keep from ________ inventories.If actual output is greater than equilibrium output, firms will ________ output to keep from ________ inventories.When the level of unplanned inventory investment is equal to zero, the economy isAssume a closed economy with no government.
model stemmed from his concern with explainingKeynes was especially interested in explaining movements of ________ expenditure, and is ________ related to the level of taxes.Keynes believed that unstable investment caused the Great Depression. If disposable income equals $1000, then total consumption equalsAssume that autonomous consumption equals $200 and disposable income
Plug in (Y - T) = 100, C=30, and MPC=0.8 into the consumption equation, we get 30=autonomous consumption+0.8∗100 So autonomous consumption is equal to -50. b) Find the equilibrium level of GDP, Y, in this economy.
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