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Assume that when an economy has a GDP of $500, Consumption is $550. The MPC is .75. Investment is 25. Begin the problem by setting up an Income/Consumption Schedule like the one on page 220 of your text. Set up only the first two columns (1) and (2).
Graph the Consumption Function.
Add Investment to the graph.
What is the multiplier? (Use the formula on page 233)
What is the Break-Even level of Income? (Do not include Investment)
What is the Equilibrium level of Income? (Include Investment)
What would be the new equilibrium in this economy if Investment increased by $12?
The last question is where I need help. If I chart the investment at an increase of $12, there is no equilibrium achieved. How can I calculate the new equilibrium?
Include no more than six abbreviated bulleted items for each slide in approximately 24-point font. The title slide content should include the title of the assignment, your name, your professor's name, the course title, and the date.
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Kalamazoo Competition-Free Concrete (KCC) is a local monopolist of ready-mix concrete. what is its profit-maximizing sales quantity and price? what is the value of MC at profit maximizing sales quantity
q1. lets think about two countries frugal and smart. in frugal people devote 50 percent of gdp to making new investment
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sir francis galton a cousin of james darwin examined the relationship between the height of children and their parents
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