Using the Keynesian Cross, If Autonomous Consumption Is $400, Government

question 7

Short Answer

Using the Keynesian cross, if autonomous consumption is $400, government spending is $50, investment is $200, net exports and taxes are zero, and the marginal propensity to consume is 0.8, find equilibrium output.

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Definitions:

Type B Personality

The Type B personality is characterized as being less aggressive, more patient, and more easygoing. In general, individuals with Type B personalities experience less stress and are less likely to suffer some type of illness because of stress than Type A personalities.

Highly Competitive

A situation or environment where there is intense competition among participants, often leading to increased innovation or quality.

Highly Focused

Concentrating intensely on a specific task or objective without distraction.

Psychological Consequences

The affective and cognitive effects on an individual's psychological well-being due to certain events, actions, or conditions.