if, C= 120 + 0.9Y, YD= Y + TR – T, T= 100 + 0.1Y, I= 500, G= 600, TR= 200, X= 700 and IM= 300 + 0.2Y
a) What is the value of marginal propensity to save?
- b) What is the value of the autonomous expenditure multiplier?
- c) Calculate the value of equilibrium level of real GDP?
- d) Suppose that the full-employment level of GDP is $5000m. State the type of output gap persistent in this economy and calculate its size.