Question 1 (a)Given the following information, calculate the level of real gross domestic product that results in spending balance in the economy (T is imposees or task revenue). C = vitamin C + 0.7 (Y - T) I = 100 G = 200 T = 200 X = 50 - 0.1Y Real GDP = C + I + G + X = Y = 100 + 0.7 (Y-200) + 100 + 200 + 50 - 0.1Y Y= 310 - 0.6Y 0.6Y = 310 Y= 775 1) What is the MPC in this example? What is the mononuclear phagocyte system? What is the MPI? How does the MPI affect the face of the AE line, compared with the same fabric without imports or exports? In order to find the MPC in this case, we constructed a tabulate amidst GPD and role and the Consumption polity is: C = 100 + 0.7 (Y-T) Since MPC= ê Consumption /ê Income = 3.5 / 50 = 0.07 Which is eq t the slope of the consumption function. Since MPS + MPC = 1 MPS = 1 - MPC = 1 - 0.7 = 0.3 MPI = D I / D GDP But we do non know the changes in the fall of I and the GDP. Therefore, we contain to push another approach in finding the MPI. Now given over the equation X = 50 - 0.

1Y Because export does not forecast on the national income. unless import does, so if we ready the export equation with prize to Y, we will get the MPI. Now X = 50 - 0.1Y Dx / Dy = -0.1 MPI = -0.1 The large the MPI, the steeper the slope of the AE line, As the great amount of GDP, the greater the amount of import as more import is consumed it... If you fate to get a adept essay, order it on our website:
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