Consider an economy wherein equilibrium level of aggregate income () is the sum of aggregate investment expenditure () and aggregate consumption expenditure (). For values of , and any amount of aggregate income in excess of 1500 currency units is entirely saved in the economy. If the full employment level of , the minimum value of necessary to ensure full employment in the economy is
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Consider an economy wherein equilibrium level of aggregate income (Y) is the sum of aggregate investment expenditure (I) and aggregate consumption expenditure (C). For values of Y ≤ 1500, C = 200 + 0· 6Y and any amount of aggregate income in excess of 1500 currency units is entirely saved in the economy. If the full employment level of Y = 1750, the minimum value of I necessary to ensure full employment in the economy is (A) 500 (B) 550 (C) 600 (D) None of the above
Also written as: Consider an economy wherein equilibrium level of aggregate income (Y) is the sum of aggregate investment expenditure (I) and aggregate consumption expenditure (C). For values of Y <= 1500, C = 200 + 0* 6Y and any amount of aggregate income in excess of 1500 currency units is entirely saved in the economy. If the full employment level of Y = 1750, the minimum value of I necessary to ensure full employment in the economy is
Keynesian cross and the multiplier has come up 167 times in 7 exams since 2006.
This question is on Keynesian cross equilibrium, part of Keynesian cross and the multiplier in Macroeconomics.
How income is determined when output adjusts to planned spending, and what happens to unplanned inventories.
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Question from the JNU SSS 2011 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.