In: Economics
Income (Yd) |
Consumption Expenditure |
Saving |
Investment Expenditure |
Government Expenditure |
Net Export Expenditure |
Aggregate Expenditure |
$8000 |
$11,000 |
$2,500 |
$5,000 |
$12,500 |
||
12,000 |
14,000 |
2,500 |
5,000 |
12,500 |
||
20,000 |
20,000 |
2,500 |
5,000 |
12,500 |
||
30,000 |
27,500 |
2,500 |
5,000 |
12,500 |
||
50,000 |
42,500 |
2,500 |
5,000 |
12,500 |
||
100,000 |
80,000 |
2,500 |
5,000 |
12,500 |
Calculate savings, autonomous consumption, MPC, MPS, break even income, and the equilibrium level of income (Y = AE = C + I + G + NX) in the above given information.
Draw a graph showing disposable income (Yd) on the horizontal axis and aggregate expenditures (AE)
on the vertical axis with a 45 degree line. Graph consumption
curve (CC) and AE (AE = C + I) curve on this graph. Indicate
equilibrium level of income on this graph.
You can draw the graph by hand but label the axis and the curves clearly.