Macroeconomics Study Set 46
Quiz 25 :
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Q110 Q110 Q110
You are given the following information about the Australian economy. Consumption function of C = 15 + 0.7Y, investment equal to 8, government expenditure equal to 12, exports equal to 20, and an import function of M = 0.2Y. What is the equation for the aggregate expenditure curve for this economy?
Q111 Q111 Q111
You are given the following information about an economy. Autonomous consumption expenditure is $40 billion, investment is $200 billion, and government expenditure is $250 billion. The marginal propensity to consume is 0.7 and net taxes are $250 billion. Net taxes are assumed to be constant and not vary with income. Exports are $500 billion and imports are $450 billion. The consumption function in billions of dollars is .