Question: please only answer d and e and f For question d it means compare B and C (not a and c) 4) Keynesian Cross: Consumption:

please only answer d and e and f

For question d it means compare B and C (not a and c)

please only answer d and e and f For question d it

4) Keynesian Cross: Consumption: C = a + b(Y T); Marginal propensity to consume b = 0.6 Autonomous consumption: a = 400; Tax: T = 200; Planned Investment: 1,, = 200; Government spending: 6 = 500 . Compare unintended inventory investment in question a) and 0), what will the rms do? (1) e) Based on your answer about the rms' behavior, discuss the different perspectives on the relationship between demand and supply from the neoclassical and the Keynesian economics. (2) t) Suppose the government increases its spending from 500 to 600 (G = 600). What is the new equilibrium level of Y and C? (1) What is the autonomous expenditure multiplier? (l)

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