Consider a simple model like the one developed in this chapter. The following equations show the levels of desired consumption and investment.

C$=500+0\mathrm{.}5$Y

I$=400$

where C is the desired$$ consumption, I is the desired$$ investment, and Y is income.

a$.$ Complete the table to the right.$($Round your responses to the nearest$$ dollar.$)$

b$.$ What is autonomous expenditure in this simple model?

AutonomNotice the notation used here for$$ income, Y$,$ which represents national$$ income, as opposed to Y Subscript D$,$ which represents disposable income. Explain why these two terms are interchangeable in this model.

In this model, there is no $\_\_\_\_\_$ and therefore no $\_\_\_\_\_\_.$The result is that disposable income is $\_\_\_\_\_$ national income.