Consider a simplified model of an economy where total demand is the sum of consumption and investment. The consumption function is given by C = 100 + 0.8Y, where C is consumption and Y is total income. Initially, planned investment (I) is 50. If planned investment increases to 70, what is the new equilibrium level of output (Y)?

Calculating National Economic Output

Calculating a Nation's Equilibrium Output

In an economy where the marginal propensity to consume is 0.8, a €20 billion increase in autonomous investment will lead to a €20 billion increase in the equilibrium level of output.

Calculating Equilibrium Output

In a closed economy with no government sector, the equilibrium level of output is €500 billion. If autonomous consumption is €40 billion and the marginal propensity to consume is 0.75, what must the level of planned investment be to achieve this equilibrium?

Comparing Economic Stimulus Effects

Econland's Equilibrium Output Calculation

In a simplified closed economy, the equilibrium level of output (income) is €1,000 billion. Autonomous consumption is €50 billion, and planned investment is €150 billion. Based on this information, what is the marginal propensity to consume?

In a closed economy without a government, autonomous consumption is €200 billion, planned investment is €100 billion, and the marginal propensity to consume is 0.7. The equilibrium level of output for this economy is €____ billion.