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Stuck on this question for macro .. someone help me get started?

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Stuck on this question for macro .. someone help me get started?

Postby sebastiano » Thu Mar 01, 2012 4:42 am

the question states:
if household saving is sufficient to finance all of gov spending when disposable income is 1666.67 what are autonomous consumer expenditures? Find the consumption function
i dont really understand how to find the autonomous consumer expenditures from this.
I know that the autonomous expenditures include a+i+g+x ( where x = exports )
i = 135 , investment
g = 300 , gov spending
x = 100 , exports

so AE = a + 135 + 300 + 100 .. but that still doesn't tell me what the auton. consumer expenditures are ..

am i at least on the right track with this question .. ? can someone please help me get started or give me the first step to solving this.. :(
sebastiano
 
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Stuck on this question for macro .. someone help me get started?

Postby lawly1 » Thu Mar 01, 2012 4:50 am

Disposable income=1666.67,means Y-T=1666.67
Household saving=G=300,or Yd-C=300
C=1666.67-300=1366.67
lawly1
 
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