Question: Please solve it fast 7. Consider a closed economy with no government. The consumption function is given by C = 50 + 0.8Y. (i) What

Please solve it fast

Please solve it fast 7. Consider a closed economy with no government.

7. Consider a closed economy with no government. The consumption function is given by C = 50 + 0.8Y. (i) What is the equilit rium income if: (a) 1 = 0 and (b) 1 = 50? (ii) What are the levels of saving at equilibrium incomes? (ili) What happens to equilibrium income (1 = 50) if MPC increases from 0.8 to 0.9? (iv) What happens to the multiplier when MPC increases from 0.8 to 0.9? (v) If 1=50, what would be the level of unintended inventory investment if the firms produced output equal to (a) 560 or (b) 480? How would the firms respond in these situations? 8. An economy in equilibra

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