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.
according to savings investment apporach equilibrium level of income is the point where savings euals investment hence $30000