Economics -Q30

Economics -Q30 Online Services


Question 1. Consumption

The Keynesian cross for a representative household is given in the figure below.
The marginal propensity to consume is 0.9. Tax rate is 35%. There is no depreciation or indirect taxes.


  • How much does the household spend when it has no disposable income?


  • How much does the household spend if its per capita GDP (the sum of wages and rent) is $55000? Does it break even (disposable income = C)?



You can read more about our case study assignment help services here.

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention Case Id mentioned in end of every Q&A Page. You can also send us your details through our email id with Case Id in the email body. Case Id is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.

Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to Case Id . The date is asked to provide deadline.

Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id and must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.

Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.

Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.

Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.

Case Approach

Scientific Methodology

We use best scientific approach to solve case study as recommended and designed by best professors and experts in the World. The approach followed by our experts are given below:

Defining Problem

The first step in solving any case study analysis is to define its problem carefully. In order to do this step, our experts read the case two three times so as to define problem carefully and accurately. This step acts as a base and help in building the structure in next steps.

Structure Definition

The second step is to define structure to solve the case. Different cases has different requirements and so as the structure. Our experts understand this and follow student;s university guidelines to come out with best structure so that student will receive best mark for the same.

Research and Analysis

This is the most important step which actually defines the strength of any case analysis. In order to provide best case analysis, our experts not only refer case materials but also outside materials if required to come out with best analysis for the case.

Conclusion & Recommendations

A weak conclusion or recommendations spoil the entire case analysis. Our expert know this and always provide good chunks of volume for this part so that instructors will see the effort put by students in arriving at solution so as to provide best mark.

Related Services


  • Suppose saving behavior is promoted among the population. What does the value of MPC have to become in order for a household to break even at the national income per capita of $55000?



Question 2. Spending multiplier.
The elements of expenditure are as follows

Investment is I = 3500

Government spending is G = 5000

Net exports are NX = 0

Starvation-level consumption is s.l.c. = 4000


Income tax rate is τ= 45%

GDP = 18000

The economy is in equilibrium.

  • Find the value of autonomous spending.

  • Find the value of the spending multiplier.

  • What is the MPC in this country?



Question 3. Equilibrium in the Keynesian Cross
The elements of expenditure are fixed:

Investment is I = 3500

Government spending is G = 5000

Net exports are NX = 0

Starvation-level consumption is s.l.c. = 4000


The spending multiplier is 1.6

and the output is GDP = 22000


  • How do output and expenditure compare? What does that imply for the firms’ inventories? Are they increasing, decreasing, or remaining the same?



  • Illustrate with the Keynesian Cross how the economy will converge to equilibrium in the fixed-price environment if no government intervention happens.



  • Suppose the government decides to offset the business cycle by increasing the public spending, G. Find by how much G has to increase in order to set the equilibrium at output=expenditure=22000.


Product Code -Economics -Q30
Looking for best Economics -Q30 online ,please click here