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:

Structural Differentiation

The process of dividing an organization into smaller units or departments that specialize in specific tasks or functions.

Unresolved Prior Conflicts

Disagreements or disputes from the past that have not been addressed or resolved, often leading to ongoing tension or issues.

Role Ambiguities

The uncertainty or lack of clarity surrounding the expectations, responsibilities, and duties of a particular role.