a) Set up a table for the following income levels: $100, $200, $400, $500, $600, $800, $1,000. At $100, consumption is $175 and the MPC=.75. Planned Investment is autonomous at $25.

Your columns should be in this order….Aggregate income (Y), Aggregate consumption, Planned Investment, aggregate planned expenditures, unplanned inventory change, Equilibrium –yes or no.

b) What is the level of autonomous consumption? Explain.

c) What is the MPS? Explain

d) Now create an aggregate expenditure figure. You may draw it by hand or computer, but a complete explanation must be typed in order to receive credit.

Answer rating: 100% (QA)

a Set up a table for the following income levels 100 200 400 500 600 800 1000 At 100 consumption is ... View the full answer