In Macroland,autonomous Consumption Equals 100,the Marginal Propensity to Consume Equals

question 52

Multiple Choice

In Macroland,autonomous consumption equals 100,the marginal propensity to consume equals 0.75,net taxes are equal to 40,planned private-sector investment is equal to 50,government purchases are equal to 150,and net exports are equal to 20.Induced planned aggregate expenditure equals ______________.

• A) 0.25Y
• B) 320 + 0.25Y
• C) 0.75Y
• D) 290 + 0.75Y
• E) 0.75 (Y-T)

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Definitions:

Labor Force

The aggregate count of individuals who are either working or actively looking for work within a specific country or area.

Consumer Price Index

An evaluation method that looks into the composite average of prices for a collection of consumer goods and services, including items like transportation, food, and healthcare.

Urban Household

A household located in a city area, often distinguished by different sociological and economic characteristics than rural households.

Unemployment Rate

The slice of the labor pool that is not working but is seeking employment actively.