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The Diagram Below Shows Desired Aggregate Expenditure for a Hypothetical

Question 105

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The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy: • marginal propensity to consume (mpc) = 0.80
• net tax rate (t) = 0.15
• no foreign trade
• fixed price level
• all expenditure and income figures are in billions of dollars. The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy: • marginal propensity to consume (mpc) = 0.80 • net tax rate (t) = 0.15 • no foreign trade • fixed price level • all expenditure and income figures are in billions of dollars. FIGURE 22-3 Refer to Figure 22-3.What is the equilibrium national income in this economy? A) $1470.59 B) $3125.00 C) $1975.00 D) $5000.00 E) $6171.87 FIGURE 22-3
Refer to Figure 22-3.What is the equilibrium national income in this economy?


A) $1470.59
B) $3125.00
C) $1975.00
D) $5000.00
E) $6171.87

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