A) What is the current equilibrium level of income? B) What is the level of injections? What is the level of withdrawals? C) If national income now rises by £12 billion, and as a result, the consumption of domestically produced goods rises to £68 billion. Calculate the marginal propensity to consume (MPC).
A) What is the current equilibrium level of income? B) What is the level of injections? What is the level of withdrawals? C) If national income now rises by £12 billion, and as a result, the consumption of domestically produced goods rises to £68 billion. Calculate the marginal propensity to consume (MPC).
Chapter8: Aggregate Demand And The Powerful Consumer
Section: Chapter Questions
Problem 8DQ
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