I am not sure where to start with this. So if someone could give me step by step

Question

I am not sure where to start with this. So if someone could give me step by step instructions that would be awesome :) thanks! In an economy without government purchases, transfers, or taxes, and without imports or exports, aggregate autonomous consumer spending is $500 billion, planned investment spending is $250 billion, and the marginal propensity to consume is 0.5. write the expression for planned aggregate spending as in Equation 11(26)A-1: Aplanned= A + MPC xYD+ Iplanned- AEplanned billion + YO +5 billion planned= $ mmmm

Explanation / Answer

AE = $ 500 billion + 0.5 X YD + $ 250 billion

A is the autonomous consumption which is $ 500 billion

MC = Marginal propensity to consume i.e. 0.5

I = Investment spending which is $ 250 billion

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.