C = 250 Billion +. 80GDP
Please use the above equation for the given questions:
Question 1. If the planned investment is $200 billion, the equilibrium level of GDP is:
Question 2. If the equilibrium is $2000 billion, autonomous investment is:
C = $100 + .80 (GDP); I = $20
Please use equation above to answer questions below.
Question 3. Private sector equilibrium occurs at GDP of:
Question 4. The equation for private sector equilibrium can be expressed as:
Question 5. What is the value of the marginal propensity to consume?
Question 6. What is the value of the multiplier
Question 7. If planned investment increases by $10, by how much will equilibrium GDP increase?
Question 8. The new equilibrium GDP after the $10 increase in investment is:
Question 9. Assume government decided to spend $30. Equilibrium GDP at investment of $30 and government spending of $30 is: