Plot the aggregate expenditure and aggregate supply curves, Ask an Expert

Economics

An economy is characterized by the following relationships:

C = 500 + 0.6Y

I = 300

a) Plot the aggregate expenditure and aggregate supply curves for incomes ranging from 500 to 3,000.
b) find out the equilibrium level of income.
c) What is the level of consumption at the equilibrium level of income?
d) find out the marginal propensity to save for this economy

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M960085

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