estion 1 Needs Grading Private consumption C in a small closed economy can be described by the expression C - 5+ (3/4) Y stipulating its dependence of C on aggregate output Y. Planned investment by the private sector is ? = 10 while government purchases and net exports are zero, (i) Obtain autonomous consumption, the marginal propensity to save (MPS), the spending multiplier (m). the equilibrium GDP and the private savings S for this economy (you may need to draw a consumption table for Y levels 0, 10, 20, .... 100). (il) Anticipating a favorable effect on business of the end of the pandemic, firms decide to double planned investment spending to expand capacity. What will happen to the GDP and to private savings? (#) Confident about the signs of economic recovery observed in (i), people abandons any sign of austere behavior and indulges in a lavish spending surge evidenced by an increase in autonomous consumption from 5 to 10. What will happen to the equilibrium GDP and to private savings as a consequence of this behavioral change? Obtain the new values of Y and S as part of your answer. (iv) Using a single graph, describe the equilibrium GDP corresponding to the scenarios described in parts (). (i) and (ill). You may attach a picture of the graph to an email and send it to (v) Comparing (1) and (iin, can you conclude that abandoning austerity has caused a squandering of painfully made savings? Explain why