keynesianexpendituremodel

keynesianexpendituremodel - 6. Given the above consumption...

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Name . . . ECON-230.- . Assignment: Building the Keynesian expenditures Model: STAG~ I . (Due on TUesday10128) 1. What Is the Keynesian fonnula for Aggregate Expenditures? AEa __ + __ + __ + _ 2. According to Keynes. Consumption Is a functionof _ -----------------------------------------------------------. Suppose that you are given the following Consumption function: . C = 100 + "8Y 3. Is graphed on the vertical axis (the dependent variable), while Is graphed on the ~orlzontal axis (the Independent variable). _ 4. Given the above consumption function, what Is the vertlcallntereept? 6. Given the above consumption function, what Isthe technical name for the vertical Intercept?
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Unformatted text preview: 6. Given the above consumption function, what Is the slope? 7. Given the above consumption function, what Isthe technicalname for the slope? 6. What Is the fonnula for the Marginal PropensIty to Consume (M PC) ? (HINT: when you hear the word -marginal," think"change". (I.e.,"A"). 7. If MPC Is equal to .90. then for every one dollar earnedIn additionalIncome, how much additional consumption takes place? 8. What Is the formula for the Marginal Propensity to Save (MPS) ? 9. What Is the relationship between MPC & MPS? ,. 10. What Is the formula for the Average Propensity to Consume(AP C) ?...
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