Answer the Following Questions Using the Aggregate Expenditures Model of the Economy

question 37

Essay

Answer the following questions using the aggregate expenditures model of the economy described below.C = 100 + .8Yd
T = 60 + .25Y
Ia = 28
Ga = 48
Xa = 54
M = .1Y
(a) What are the marginal propensity to consume, the marginal tax rate, and the marginal propensity to import?
(b) What is the saving function? What is the marginal propensity to save?
(c) What is the aggregate expenditure function? What is autonomous expenditure? What is the marginal propensity to withdraw?
(d) What is the equilibrium level of real GDP?
(e) What is the size of the multiplier?
(f) Suppose the full employment level of real GDP is $380.Does a recessionary gap or an inflationary gap exist? How can the government eliminate the gap by altering government expenditures?

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Definitions:

Seminiferous Tubules

Narrow, coiled tubules within the testes where sperm are produced via the process of spermatogenesis.

Ductus Deferens

A tube that carries sperm from the testicles to the urethra, facilitating the transport of sperm during ejaculation.

Ejaculatory Duct

A duct through which semen is ejaculated, running from the seminal vesicle and merging with the vas deferens.

Ductus Deferens

A tube that carries sperm from the epididymis to the ejaculatory ducts, playing a role in the male reproductive system.