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Based on the give table

a) What is the marginal propensity to consume implicit in this data?

b) What is the numberical value of the multipler for this economy?

c) What is the equilibruim level of the real GDP?

d) Suppose that government spending (G) decreased from 1000 to 400 at each level of income. What would happen to the equilibruim level of real GDP?

Y C I G

7000 6600 400 1000

8000 7400 400 1000

9000 8200 400 1000

10000 9000 400 1000

11000 9800 400 1000

12000 10600 400 1000

13000 11400 400 1000

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92199467

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