Assume That GDP (Y) Is 6,000

question 130

Essay

Assume that GDP (Y) is 6,000. Consumption (C) is given by the equation C = 600 + 0.6(Y - T). Investment (I) is given by the equation I = 2,000 - 100r, where r is the real rate of interest in percent. Taxes (T) are 500 and government spending (G) is also 500.
a.What are the equilibrium values of C, I, and r?
b.What are the values of private saving, public saving, and national saving?
c.If government spending rises to 1,000, what are the new equilibrium values of
C, I, and r?
d.What are the new equilibrium values of private saving, public saving, and national saving?

Understand how to objectively measure design elements for effective document creation.

Recognize the effect of paragraph alignment on document formality and readability.

Understand the relationship between visual balance and tone in document design.

Know the significance of white space in enhancing document readability and design.

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Definitions:

Cost Behaviour

The way in which a cost reacts or changes when there is a change in the level of business activity.

Marginal Revenue

The additional income earned from selling one more unit of a good or service.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Economic Profit-Maximising

The point at which a firm achieves the highest profit possible given its production costs and market conditions.