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In the following Y equals income-C equals consumption S equals saving c equals marginal propensity to consume-assuming no foreign trade or government sector- given investment a multiplier of 5 which i?
c=100+cY THEN WHICH ONE IS correct (a) S=100+0.2Y (B) C=100+0.8Y (C) S=100+0.8Y (D) C= 100+0.2Y i don't know just tell us
How do we calculate IS equilibrium of national income?
IS equilibrium in national income is achieved when the total output (income) in an economy equals total spending (expenditure). This is represented by the IS curve, which shows the relationship between interest rates and income where investment equals saving. To calculate it, we set the aggregate demand (consumption + investment + government spending + net exports) equal to the aggregate supply (national income) and solve for the income level. At the equilibrium point, any changes in interest rates will shift the IS curve, resulting in a new equilibrium income level.
Consumption plus savings equals?
Disposable Income
What is a Change in consumption due to a change in real income?
The more you make the more you spend. Spending equals consumption
What does a balanced budget mean in terms of government revenue?
A balanced budget occurs when a government's total revenue equals its total expenditures over a specific period, typically a fiscal year. This means that the government is not borrowing money or running a deficit; instead, it is funding its operations and obligations entirely through the income it generates, such as taxes and fees. Maintaining a balanced budget is often seen as a sign of fiscal responsibility, promoting economic stability and sustainability.
Is it equilibrium when savings equals planned investment?
yes, because unplanned investment equals zero
In the following Y equals income-C equals consumption S equals saving c equals marginal propensity to consume-assuming no foreign trade or government sector- given investment a multiplier of 5 which i?
c=100+cY THEN WHICH ONE IS correct (a) S=100+0.2Y (B) C=100+0.8Y (C) S=100+0.8Y (D) C= 100+0.2Y i don't know just tell us
How do we calculate IS equilibrium of national income?
IS equilibrium in national income is achieved when the total output (income) in an economy equals total spending (expenditure). This is represented by the IS curve, which shows the relationship between interest rates and income where investment equals saving. To calculate it, we set the aggregate demand (consumption + investment + government spending + net exports) equal to the aggregate supply (national income) and solve for the income level. At the equilibrium point, any changes in interest rates will shift the IS curve, resulting in a new equilibrium income level.
What is the 45 degree line in economics?
Its a line lol A guideline used in Keynesian economics in conjunction with the consumption line (to derive saving) and the aggregate expenditures line (to identify Keynesian equilibrium). This guideline forms a 45-degree angle with both the horizontal income axis and the vertical consumption expenditure (or aggregate expenditures) axis in the Keynesian graphical analysis.
Consumption plus savings equals?
Disposable Income
What is a Change in consumption due to a change in real income?
The more you make the more you spend. Spending equals consumption
Rental income equals what percentage of investmenr?
wht's is investment
Does the sum of the assets and liabilities of a business always equals the investment of the business owner?
Yes
What does a balanced budget mean in terms of government revenue?
A balanced budget occurs when a government's total revenue equals its total expenditures over a specific period, typically a fiscal year. This means that the government is not borrowing money or running a deficit; instead, it is funding its operations and obligations entirely through the income it generates, such as taxes and fees. Maintaining a balanced budget is often seen as a sign of fiscal responsibility, promoting economic stability and sustainability.
What is an IS curve?
It is the locus of combinations of the interest rate and the level of real national income for which desired aggregate expenditure equals actual national income.So called because, in a closed economy with no government, it also reflects the combinations of the interest rate and national income for which investment equals saving, I=S. In general, it reflects points for which injections equal withdrawals.
What is IS curve?
It is the locus of combinations of the interest rate and the level of real national income for which desired aggregate expenditure equals actual national income.So called because, in a closed economy with no government, it also reflects the combinations of the interest rate and national income for which investment equals saving, I=S. In general, it reflects points for which injections equal withdrawals.
What is equilibrium national income?
Equilibrium national income refers to the level of income in an economy where aggregate demand equals aggregate supply, meaning that total production matches total spending. At this point, there are no inherent forces causing the income level to change, as all goods produced are purchased. It reflects a balance between consumption, investment, government spending, and net exports. Any deviation from this equilibrium can lead to either surpluses or shortages, prompting adjustments in output and income levels.
