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What are the four categories of aggregate expenditure (demand)? Give an example of each.

 

9.1  Calculate the Marginal Propensity to Consume and the Marginal Propensity to Save. Fill in the blanks in the following table.  Show that the MPC plus the MPS equals 1.



National Income & Real GDP (Y)

Consumption (C)

Saving (S)

MPC

MPS

$9,000

$8,000

     

$10,000

$8,600

     

$11,000

$9,200

     

$12,000

$9,800

     

$13,000

$10,400

     
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