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 ___.