Question: 1. (14 points) Answer the next questions on the basis of the following data: Y C (ba $) (ba $) 40 44 50 50 60

1. (14 points) Answer the next questions on the basis of the following data: Y C (ba $) (ba $) 40 44 50 50 60 56 70 62 80 68 90 74 100 80 a) If investment is $4 bn, government expenditure is $10 ba, exports are $20 ba and imports are $22 ba, what is the equilibrium level of GDP? b) What are the values of MPC and multiplier in this economy? Prove all your answers with calculations
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
