Y=C + I + G + ( X - IM) = 32000
Where C = 1000 + 0.75Y
I = 2000
G = 4000
(X-IM)=1000
Calculate the value of total autonomous expenditure (a + I + G + (X-M)).
Pls tell me da answer n explain it fo me.... thx...
2006-11-09 22:28:37 · 2 answers · asked by Tomato 1 in Social Science ➔ Economics
Autonomous expenditure is all expenditure that is not related to income. No one knows where this money comes from, all people do know is that it is not related to income.
C=1000+0.75Y
C = consumption
Y = income
0.75 is the amount of your income your spend on consumption
so if you earn 100$ you will spend 75 on consumption.
1000 is autonomous consumption. Consumers will spend 1000 no matter how much money they make
I'm going to expand your AE=Y formula
Y=C+I+G+X-IM
Y=1000+0.75Y+2000+4000+1000
Y=8000+0.75Y
now in the formula their are three terms Y (GDP), 0,75Y (The amount of money spent on expenditure based on the income you earn) and 8000 (The amount of money that will be spent no matter what the income is. It is independent or autonomous of income).
Autonomous expenditure is 8000
I hope that I was clear
2006-11-09 23:03:23 · answer #1 · answered by Just Wondering 3 · 0⤊ 0⤋
How the heck did you smuggle a laptop into an exam?
2006-11-09 23:05:10 · answer #2 · answered by Mardy 4 · 1⤊ 0⤋