i need 7, 8 parts Solution Suppose that the linear equation for consumption in a hypothetical economyis: C-60+0.8Y. Also suppose that income (Y) is $300. Calculate the folowing:1. The level of consumptionYour answer2. The level of savingYour answer3. The marginal propensity to consumeYour answer4. The marginal propensity to saveYour answer 5. The average propensity to consumeYour answer6. The average propersity to save (Your answer7. The multiplieriYour answer8. Let's suppose the level of investment increased by $20, how much of a changein GDP will result using the data above.Your answer

MPC = 0.8 Multiplier = 1 / (1 - mpc) = 1 / (1 - 0.8) = 1/0.2 = 5

Answered: 7. The multiplier Your anwer 8. Let's…

7. The multiplier Your anwer 8. Let's suppose the level of investment increased by $20, how much of a change in GDP will result using the data above. Your answer

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 15E

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Question

i need 7, 8 parts Solution

Suppose that the linear equation for consumption in a hypothetical economy
is: C-60+0.8Y. Also suppose that income (Y) is $300. Calculate the folowing:
1. The level of consumption
Your answer
2. The level of saving
Your answer
3. The marginal propensity to consume
Your answer
4. The marginal propensity to save
Your answer

5. The average propensity to consume
Your answer
6. The average propersity to save (
Your answer
7. The multiplieri
Your answer
8. Let's suppose the level of investment increased by $20, how much of a change
in GDP will result using the data above.
Your answer

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