Using the Keynesian Cross, If Autonomous Consumption Is $500, Government

question 11

Short Answer

Using the Keynesian cross, if autonomous consumption is $500, government spending and taxes are $200, investment is $100, net exports are zero, and the marginal propensity to consume is 0.9, find equilibrium output.

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Definitions:

Lampreys

Jawless fish known for their distinctive, toothed, funnel-like sucking mouth, often considered parasites or predatory on other fish.

Jawless Fish

A group of vertebrates known for lacking jaws, including lampreys and hagfish, representing the earliest fish in the evolutionary history.

Bones

The rigid organs that constitute part of the endoskeleton of vertebrates, providing support and protection and enabling movement.

Fins

External appendages on fishes and some other aquatic animals, used primarily for movement, steering, and balance in water.