Business, 14.11.2019 20:31, jmwmarshall

Use the following macroeconomic model structure to answer the questions followed. note that you must show your work of estimations for these numerical multiple-choice questions for gradable credit. without showing your works of estimation, your answers won’t credible for take-home exam. 8 pts c = 300 + 0.8yd; c = consumption function; yd (y-t) = disposable income i = 200; i = investment g = 400; g = government expenditure t = 200; t = tax revenue also assume that yf = full employment gdp (potential gdp) = 5,000

6.1. the equilibrium gdp level (income) is hint: ye = c+i+g a. 2,850 b. 3,700 c. 3,145 d. 3,800

6.2. at the equilibrium level of output, the aggregate consumption level is: a. 3,100 b. 3,250 c. 3,400 d. 3,625

6.3. at the equilibrium level of output, the aggregate saving level is: a. 550 b. 450 c. 400 d. 350

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Use the following macroeconomic model structure to answer the questions followed. note that you mus...