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

question 166

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.Short-run equilibrium output in this economy equals

• A) 387.
• B) 1,000.
• C) 1,150.
• D) 1,160.
• E) 1,280.