Question

In: Economics

5. Assume you are given the following information for the economy of Macroland: GDP C ...

5. Assume you are given the following information for the economy of Macroland:

GDP C S I G (X – M) AE

0 200 _____ _____ _____ 0 _____

500 600 _____ 200 100 0 _____

1000 1000 _____ _____ _____ 0 _____

1500 ____ _____ _____ _____ 0 _____

2000 1800 _____ 200 100 0 _____

2500 2200 _____ 200 100 0 _____

3000 2600 _____ 200 100 0 _____

3500 ____ _____ 200 100 0 _____

4000 3400 _____ 200 100 0 _____

a. What is the MPC in this model? The MPS?

b. Fill in the blanks in the table above.

c. What is the level of equilibrium GDP? How do you know?

d. If investment spending increases by $100, what is the new level of equilibrium

GDP?

Expert Solution

Rahul Sunny answered 1 year ago

. Assume you are given the following information for the economy of Macroland: GDP...

. Assume you are given the following information for the economy of Macroland: GDP C S I G (X – M) AE 0 200 _____ _____ _____ 0 _____ 500 600 _____ 100 100 0 _____ 1000 1000 _____ _____ _____ 0 _____ 1500 ____ _____ 100 100 0 _____ 2000 1800 _____ 100 100 0 _____ 2500 2200 _____ 100 100 ...

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