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The mpe is 6 autonomous investment is $1000 autonomous government spending is $8000 autonomous consumption is $10000 and autonomous

The mpe is .6; autonomous investment is $1,000; autonomous government spending is $8,000; autonomous consumption is $10,000; and autonomous net exports are $1,000. a. What is the equilibrium level of income in the country? b. Autonomous net exports increase by $2,000. What will happen to income? c. What will happen to unemployment? (Remember Okun s rule of thumb.) d. You ve just learned the mpe changed from .6 to .5. How will this information change your answers in a, b, andc?

Apr 30 2020 View more View Less

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