Determine the average propensity to save

Assignment Help Macroeconomics

Reference no: EM13181662

In a simple economy (assume there are no taxes; thus, Y is disposable income), the consumption function is:

C = 500 + 0.75Y.

The current level of real GDP is $6000

At this level of real GDP, consumption will be $___, and savings will be $___. If GDP were to increase by $1000, consumption would increase by $___. (round your responses to the nearest dollar.)

At a real GDP levelof $6000 the average propensity to consume is ___, and the average propensity to save is ___.

Reference no: EM13181662

Questions Cloud

Prepare the liquidators final statement of account : The liquidator's remuneration was agreed at $2 % on the amount realized (including cash) and 2% on the amount paid to the unsecured credito$ You are required to prepare the liquidator's final statement of account.

Explain what mass of oxygen is contained in the two tanks : Assuming a tank temperature of 16oC, what mass of oxygen is contained in the two tanks?

Determine how many doses of the drug to produce : The company has already spent $150,000 on research and development for the drug. The first round of clinical trials has been performed cost $75,000 and the results from the trials were promising. The company is considering whether to proceed with ..

Write net ionic equations for the reaction : Write a net Ionic equation for the reaction that takes place when aq barium chloride soln reacts with an aq soln of potassium phosphate.

Determine the average propensity to save : At this level of real GDP, consumption will be $___, and savings will be $___. If GDP were to increase by $1000, consumption would increase by $___. (round your responses to the nearest dollar.) At a real GDP levelof $6000 the average propensity to..

State the si unit system : Therefore an answer in U.S. customary units, such as miles per hour would not be accepted as correct. A car traveling with constant speed travels 150 km in two hours. What is the speed of the car?

Find the x-intercept : Find the x-intercept of L(x) as a way of estimating the x-intercept of f(x). Round the coefficients 3 decimal places.

Prepare the statement on the assumption that disbursements : The liquidator is entitled to a commission of 5% on collections from book debts and 2% on the amounts paid to equity shareholders. Prepare the statement on the assumption that disbursements are made in accordance with the law as and when cash is a..

State how might temperature changes in the human body : How might temperature changes in the human body have an impact on human health? (Use an example to help illustrate your understanding). The human body goes through various temperature changes during a single day.

User Account

All Pages