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Anna35 [415]
3 years ago
15

In an economy without government purchases, government transfers, or taxes, aggregate autonomous consumer spending is $750 billi

on, planned investment spending is $300 billion, and the marginal propensity to consume is 0.75. What is the expression for planned aggregate spending?
Business
1 answer:
Shalnov [3]3 years ago
5 0

Answer:

$1,050 billion + [(0.75) x YD]

Explanation:

To determine the expression for planned aggregate spending we must first add consumer spending and planned investment spending = $750 billion + $300 billion = $1,050 billion. Then for the rest of the equation we must multiply the marginal propensity to consume (0.75) times disposable income.

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Since the economy is in long-run equilibrium in 2019, and the stock prices unexpectedly rise and stay high for a long time, it means that the price level does not:

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a. both the price level and real GDP rise.

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c. the price level falls and real GDP rises.

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