Question 1 (a)Given the following information, calculate the give aim of real gross domestic product that results in spending balance in the economy (T is imposees or valuate revenue). C = ampere-second + 0.7 (Y - T) I = 100 G = 200 T = 200 X = 50 - 0.1Y Real GDP = C + I + G + X = Y = 100 + 0.7 (Y-200) + 100 + 200 + 50 - 0.1Y Y= 310 - 0.6Y 0.6Y = 310 Y= 775 1) What is the MPC in this example? What is the mononuclear phagocyte system? What is the MPI? How does the MPI affect the position of the AE line, compared with the same fabric without imports or exports? In order to find the MPC in this case, we constructed a tabulate surrounded by GPD and expending and the Consumption canon is: C = 100 + 0.7 (Y-T) Since MPC= ê Consumption /ê Income = 3.5 / 50 = 0.07 Which is like t the slope of the consumption function. Since MPS + MPC = 1 MPS = 1 - MPC = 1 - 0.7 = 0.3 MPI = D I / D GDP But we do non know the changes in the pith of I and the GDP. Therefore, we contain to take another approach in finding the MPI. Now given over the equation X = 50 - 0.

1Y Because export does not trust on the national income. even import does, so if we distinguish the export equation with obligingness to Y, we will get the MPI. Now X = 50 - 0.1Y Dx / Dy = -0.1 MPI = -0.1 The large the MPI, the steeper the slope of the AE line, As the great amount of GDP, the greater the amount of import as more import is consumed it... If you fate to get a serious essay, order it on our website:
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