C=60+0.6yd ,Nx=60, I=10, Export=5 ,Import=3, Taxes=0.2
Find: Autonomous Expenditures.
PBB
To find the Autonomous Expenditures (A), we need to consider the equation for aggregate expenditure (AE), which includes the components of consumption (C), investment (I), government spending (G), and net exports (NX).
The equation for AE is as follows:
AE = C + I + G + NX
In this case, the given equation for consumption (C) is:
C = 60 + 0.6yd
To find the autonomous component of consumption, we look at the equation when disposable income (yd) equals zero since autonomous expenditure is independent of income. Hence, we substitute yd = 0 into the equation for consumption:
C = 60 + 0.6(0)
C = 60
Therefore, the autonomous expenditure is equal to 60.
Moving on to finding the Personal Balance Budget (PBB), it is calculated by subtracting net taxes (T) from disposable income (yd). The equation is as follows:
PBB = yd - T
However, the tax (T) is not given in this case. Without the tax information, it is not possible to calculate the Personal Balance Budget (PBB). Please provide the value for taxes (T) in order to find the PBB.