ps4key - Economics 102: Kelly Fall 1999 Homework #4 Answer...

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Economics 102: Kelly Student name: Fall 1999 ID#: Homework #4 – Answer Key T.A. Name: Due Nov. 9 at large lecture Sec Code: Note: If asked to graph please use ¼” graph paper. Label this paper with your name, id#, TA name, and the number of your discussion section. If you need additional paper label it similarly. All homework paper should be stapled together. There will be no stapler at the large lecture hall. Please xerox your homework so that you can compare your answers to the answer sheet. Part I Problem #1. Lucky Campus is a closed economy. When disposable income is $0, consumption in Lucky Campus is $80 billion (all the numbers are in billion of dollars). Suppose the marginal propensity to consume is 0.75; investment is $400; government purchases of goods and services are $600; and taxes are a constant $500 and do not vary with income. At the expenditure equilibrium (i.e. where aggregate expenditure equals total output) calculate: (a) real GDP; (1) $2820
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ps4key - Economics 102: Kelly Fall 1999 Homework #4 Answer...

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