Mathematics, 02.12.2020 16:30, alyssa32900

In an economy, autonomous consumption expenditure is Ksh.50 billion, investment is Ksh. 200 billion, and government expenditure is Ksh.250 billion. The marginal propensity to consume is 0.7 and net taxes are $Ksh.50 billion. Exports are Ksh.500 billion and imports are Ksh.450 billion. Assume that net taxes and imports are autonomous, and the price level is fixed. What is the consumption function? (2 Marks)
Calculate the equilibrium value of Y, C (4 Marks)
Calculate the Keynesian multiplier and provide an intuitive interpretation of it. (4 Marks)
Consider the effects of Corona virus pandemic on the macro economy in Kenya. Suppose we assume that the massive lockdown of the economy that followed the outbreak represents a large negative aggregate demand shock, use the aggregate demand-long-run aggregate supply-short-run aggregate supply (AD-LRAS-SRAS) model to show what happens to output, prices and unemployment. (10 Marks)

Answers: 3

Show answers

Other questions on the subject: Mathematics

Mathematics, 20.06.2019 18:02, shirleybuck

Ahas the coordinates (–4, 3) and b has the coordinates (4, 4). if do,1/2(x, y) is a dilation of △abc, what is true about the image △a'b'c'? check all that apply. ab is parallel to a'b'. do,1/2(x, y) = the distance from a' to the origin is half the distance from a to the origin. the vertices of the image are farther from the origin than those of the pre-image. a'b' is greater than ab.

Answers: 3

continue

Mathematics, 21.06.2019 18:00, glocurlsprinces

The longer leg of a 30° 60° 90° triangle is 16 times square root of three how long is a shorter leg

Answers: 1

continue

Mathematics, 21.06.2019 19:30, bxbykyah

You have learned about the six trigonometric functions, their definitions, how to use them, and how to represent them graphically. the sine, cosine, and tangent trigonometric functions can be paired with their reciprocal functions, cosecant, secant, and cotangent, respectively. think about how each function is related to its reciprocal function. how are the graphs of the reciprocal functions related to their corresponding original functions? what happens to the graphs of the reciprocal functions as x approaches the zeros of the original functions? describe how you would teach friends with different learning styles (visual-spatial, aural-auditory, verbal-linguistic, physical-bodily-kinesthetic, logical-mathematical, social-interpersonal, and solitary-intrapersonal) how to graph the reciprocal functions

Answers: 2

continue

Mathematics, 21.06.2019 23:30, shonnybenskin8

The longer leg of a 30-60-90 trangle is 18

Answers: 1

continue

Do you know the correct answer?

In an economy, autonomous consumption expenditure is Ksh.50 billion, investment is Ksh. 200 billion,...