Calculate savings, MPC, MPS, break-even income, and the equilibrium level of income (Y = AE = C + I + G +NX) in the below given information.

Draw a graph showing disposable income (Yd) on the horizontal axis and aggregate expenditures (AE) on the vertical axis with a 45 degree line. Graph consumption curve (CC) and AE (AE = C + I + G + NX) curve on this graph. Indicate equilibrium level of income on this graph.

Income    (Yd)	Consumption Expenditure	Saving	Investment Expenditure	Government Expenditure	Net Export Expenditure	Aggregate Expenditure
$8000	$11,000		$2,500	$5,000	$12,500
12,000	14,000		2,500	5,000	12,500
20,000	20,000		2,500	5,000	12,500
30,000	27,500		2,500	5,000	12,500
50,000	42,500		2,500	5,000	12,500
100,000	80,000		2,500	5,000	12,500

Answer rating: 100% (QA)

Given the information provided we can calculate the following 1 Savings Savings Disposable Income Yd ... View the full answer