In a simple economy assume there are no taxes thus y is, Ask an Expert

Economics

In a simple economy (assume there are no taxes; thus, Y is disposable income), the consumption function is:

C = 500 + 0.75Y.

The current level of real GDP is $6000

At this level of real GDP, consumption will be $___, and savings will be $___. If GDP were to increase by $1000, consumption would increase by $___. (round your responses to the nearest dollar.)

At a real GDP levelof $6000 the average propensity to consume is ___, and the average propensity to save is ___.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9748998

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