Keynesian theory, Macroeconomics

Assume the United States has the following consumption information:

                                    GDP = Income             Consumption

                                          $4000                          $4500

                                          $6000                          $6000

                                          $8000                          $7500

                                        $10000                          $9000

                                        $12000                        $10500

Also the economy has G = $1100, I = $404, and XN = $15.  Unemployment in the economy is currently 5.2% and inflation is 0.1%

a.   What is the MPC in this economy?

b.   What is the multiplier in this economy?

c.   What is the equilibrium level of GDP in this economy?

d.   What is the equilibrium level of Income in this economy?

Posted Date: 2/22/2013 5:30:27 AM | Location : United States

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