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What is total autonomous expenditure

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Reference no: EM132162694

The equations of the simple Macro model are:

C= 50 + 0.7YD

T= 0.2Y

I= 75

X= 50

G= 100

I M= 0.15Y

(a) Compute the AE function and plot it in a diagram. What is total autonomous expenditure?

(b) What is the slope of the AE function?

(c) Compute the equilibrium level of national income.

(d) Suppose X rises from 50 to 100. How does this a ects the level of national income?

(e) What is the simple multiplier in this model?

Reference no: EM132162694

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