Assuming the level of investment is $16 billion and independent of the level of total output, complete the following table and determine the equilibrium levels of output and employment in this private closed economy. What are the sizes of the MPC and MPS?
Instructions: In the table below enter whole numbers for your answers. For any negative number be sure to include a negative sign (-) in front of the number
Possible Levels Real Domestic Output Consumption Savings
of Employment (Billions) (Billions) (Billions)
(Millions)
40 240 244
45 260 260
50 280 276
55 300 292
60 320 308
65 340 324
70 360 340
75 380 356
80 400 372
Equilibrium GDP= billion
Equilibrium level of employment = million