Business
Business, 01.04.2020 16:56, codie1103

In a simple economy with no government and no foreign sector, autonomous consumer spending is $250 and planned investment spending is $500. The marginal propensity to consume is 0.80.a. Solve for the equilibrium level of real GDP. Show your work. b. Suppose that interest rates fall and planned investment increases by $100. What is the new level of equilibrium real GDP? Again, show your work.

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