ACC 100 Study Guide - Midterm Guide: Autarky, Autonomous Consumption
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The following information is consumption and investment data for a private closed economy. I = i0 = 30: refer to the above data. The equilibrium level of income (y ) is: 360. Where i is planned investment, s is saving, and y is gross domestic product (gdp). S = -80 + . 4y (6. 4: refer to equations (6. 3) and (6. 4). In calculating total investment for 2001, national income accountants would: decrease it by billion. C) decrease it by billion: increase it by billion. D) increase it by billion: in a closed economy with no government: (a) the marginal propensity to consume is 0. 5, (b) autonomous consumption billion, and (c) the level of autonomous investment is billion.
