Business, 24.12.2019 18:31 sobell7725

Use the following information to answer the next nine questions. each fill-in-the-blank is worth 3 points. if your answer is in decimal form, enter it with 2 decimal places. for example, if your answer is .4, enter it into the fill-in-the-blank as .40, or if your answer is 1.4, enter it into the fill-in-the-blank as 1.40. if there are no decimals in your answer, you will simply enter the number; so if your answer is 2, enter 2 with no decimals. do not use commas. suppose the economy is characterized as follows: ae = c + i + g + (x-m)c = 600 + .75(y – t) - 30 (r)i = 500 – 50(r) g = 300x- m = -25t = 80r = 5price level p is fixed at 1 (p=1) use the information above to get expressions for the consumption function and the ae equation. the vertical intercept for the consumption function is . the slope of the consumption function is . the vertical intercept of the ae equation is . the slope of the ae equation is . equilibrium output is equal to . equilibrium consumption is equal to . suppose the investment demand function changes and is now i=400 – 50(r). the new value of equilibrium output is . the new value of equilibrium consumption is . the consumption function is still c=600 +.75(y-t) – 30(r). the keynesian spending multiplier in this economy is .

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