Solved

If the Consumption Function Is Given by the Equation C

Question 6

Multiple Choice

If the consumption function is given by the equation C = 500 + 0.5Y, the production function is Y = 50K0.5L0.5, where K = 100 and L = 100, then C equals:


A) 1,000.
B) 2,500.
C) 3,000.
D) 5,000.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q1: The property of diminishing marginal product means

Q2: When economists speak of "the" interest rate,

Q3: Assume that the consumption function is given

Q4: An economy's factors of production and its

Q5: In a closed economy, Y - C

Q7: According to the model developed in Chapter

Q8: In the classical model with fixed income,

Q9: Use the model developed in Chapter 3,

Q10: When government spending increases and taxes are

Q11: The real wage will increase if:<br>A) the