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Please complete the problem set that is attached and upload for grading
MACRO ECONOMICS EXERCISE
CHAPTER 9
Given the following information about a hypothetical economy, complete the table below. Graph the consumption function. (Include a 45 degree line and indicate the level of equilibrium GDP)
Assume Gross Private Domestic Investment “I” = $160
GDP=DI C S I Aggregate Demand
800 840 ____ ______ ________
900 920 ____ ______ ________
1500 1400 _____ ______ _________
1800 1640 _____ ______ __________
2000 1800 _____ _______ __________
2400 2120 _____ ______ __________
Plot the 45 degree line and the Consumption Function.
Break Even is at $ _________
Numerically, given only C + I = AD in the economy, the Macro Economic Equilibrium is at $ ________
Given this information, calculate the MPC and MPS
MPC = ________
MPS = _________
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