Question: 1. Consider the Keynesian Consumption Function: C : c:D + GAY T). Describe what the various components mean, i.e. what do {C,c,c1,Y,T} represent? 2. How

1. Consider the Keynesian Consumption Function: C : c:D + GAY T). Describe what the various components mean, i.e. what do {C,c,c1,Y,T} represent? 2. How would you interpret the terms {cwq} ? 3. What kind of values can c, take? For questions 4-6, suppose that the economy is characterized by the following equations: C :160+0.6(YT) 1:150 6:150 T:100 4. Solve for the value of real GDP in equilibrium, i.e. Yak . 5. Solve for disposable income, YD E Y T . 6. Solve for consumption expenditures (CW in equilibrium

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