Assignment 2
Name:
Credit: 10 points
Last Name:
Due date: On or before April 17
Submission: Online (only Canvas emailing account)
1. (5-Points)
What is the autonomous expenditure?
a) 0
b) 500
c) 1000
d) 2000
e) None of the above
Aggregate Expenditure (\$)
10,000
8,000
6,000
4,000
2,000
1000
500
0
Consumption
function
2. (2-Points)
Can C become as
low as zero in the
following formula:
AD = C + I + G
+NX.
a) Yes; b) no
0
2,000 4,000 6,000 8,000 10,000
Real GDP (Y)
3. (3-Points)
Can Yd become as low as zero in the following
formula: C = a + mpc (Yd).
a) Yes; b) no
First