The Mpe for the Economy Is 0

question 4

Essay

The mpe for the economy is 0.67.Autonomous consumption is $500,investment is $300,government spending is $250,and net exports are -$100.
(a)What is equilibrium income for the economy?
(b)If government policies were able to eliminate the trade deficit (and make net exports zero)without affecting anything else,what impact would that have on the equilibrium level of income?
(c)Suppose that the policies to increase exports in part (b)also had the effect of increasing investment by $50,and allowed the government to cut $30 in subsidies.Calculate the new equilibrium income.

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Definitions:

Participation Problems

Issues or challenges associated with involving individuals or groups effectively in decision-making processes within an organization.

Performance Decrement

A cost resulting from poor quality or low quantity of production, grievances, and unscheduled machine downtime and repair.

Compensation Awards

Payments or benefits given to employees or individuals as recognition for their work, achievements, or to cover costs incurred from injuries or losses.

Compensation Awards

Financial or non-financial rewards given to employees in recognition of their work performance, contributions, or achievements.