What is equilibrium if autonomous expenditures are $2,000 and the mpe is 0. 5?

Mathematics

1 answer:

STALIN [3.7K]1 year ago

3 0

The equilibrium level if autonomous expenditures are $2,000 and the mpe is 0. 5 is $4000.

<h3>How to calculate the equilibrium?</h3>

From the information given, the autonomous expenditures are $2,000 and the mpe is 0. 5.

Here, the equilibrium level will be:

= 2000/(1 - 0.5)

= 2000/0.5

= 4000

In conclusion, the correct option is $4000.

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