Using the aggregate expenditures table below, answer the questions that follow. a. Compute the APC when income equals $2,300 and
a. Compute the APC when income equals $2,300 and the APS when income equals $2,800.
b. Compute the MPC and MPS.
c. What does the simple Keynesian multiplier equal?
d. If investment spending is equal to $120, what will be equilibrium income?
e. Using the graph below, show saving, investment, and equilibrium income.
This problem has been solved!
Step by Step Answer: