The marginal propensity to expend is .6. Autonomous expenditures are $3,600. What is the level of...

Question

Question

The marginal propensity to expend is .6. Autonomous expenditures are $3,600. What is the level of equilibrium income in the economy?

business economics

Answer 1

Answer #1

At equilibrium, Y = 3600 + 0.6Y

0.4Y = 3600

Y= 9000

Equilibrium level of income in this economy is 9000

Answer 2

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