Help!! Macroeconomics

[maidoan97]

 

I am trying to solve this question for my Macroeconomics exam tomorrow, but I have no idea why the correct answer is A T__T

 

 

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[Anki_tao]

No idea.

I could help if this wasPhysics

[Pyotoo]

omg maybe a year ago i could solve this now i have no idea tho

[Euiwoong]

do i get wons

[maidoan97]

do i get wons

Yes if you could explain it!

 

 

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[jonjon]

 

 

first,

when y=200, x=200

when y=50, x=0

from this you can derive the equation of the curve in the graph to be y=0.75x +50

 

now since autonomous consumption decreased by 20, the y-intercept will now be 30. but the gradient will not change.

hence you get y=0.75x +30

now substitute y=x into y=0.75x +30 and you get y=120

 

tada~

[maidoan97]

first,

when y=200, x=200

when y=50, x=0

from this you can derive the equation of the curve in the graph to be y=0.75x +50

 

now since autonomous consumption decreased by 20, the y-intercept will now be 30. but the gradient will not change.

hence you get y=0.75x +30

now substitute y=x into y=0.75x +30 and you get y=120

 

tada~

Thank you so much for explaining! But could you explain how you got y=0.75x + 50 and the y=0.75x + 30

I apologize for the stupid question xD

 

 

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[jonjon]

 

 

tbh it's more math than economics

 

for y=0.75x +50

 

 

the basic model of an linear equation is y=mx+c

so let the y-axis is expenditure and x-axis is output

you got 2 points ==> (200,200) and (50,0)

now sub them into the basic model to get 2 equation

50=0m+c ----(1)

200=200m+c------(2)

from (1) you can see that c=50

now substitute that into the second equation and you get 200=200m+50 which can be resolved into m=0.75

so put it all together and you get y=0.75x+50

 

 

 

for y=0.75x +30

 

 

basically autonomous consumption is the very basic level of consumption you need. it's like food and water. even if you don't have an income, you'll still spend to get them. that's the y-intercept in the graph. so since the question state that your autonomous consumption decrease by 20, you change your "c" value from +50 to +30

 

 

 

hope this helps 

[maidoan97]

tbh it's more math than economics

 

for y=0.75x +50

 

 

the basic model of an linear equation is y=mx+c

so let the y-axis is expenditure and x-axis is output

you got 2 points ==> (200,200) and (50,0)

now sub them into the basic model to get 2 equation

50=0m+c ----(1)

200=200m+c------(2)

from (1) you can see that c=50

now substitute that into the second equation and you get 200=200m+50 which can be resolved into m=0.75

so put it all together and you get y=0.75x+50

 

 

 

for y=0.75x +30

 

 

basically autonomous consumption is the very basic level of consumption you need. it's like food and water. even if you don't have an income, you'll still spend to get them. that's the y-intercept in the graph. so since the question state that your autonomous consumption decrease by 20, you change your "c" value from +50 to +30

 

 

 

hope this helps

I get it now! Thank you so much!! I remember learning this in middle (?) school, but I tend to forget everything after exams T.T

 

 

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