Answer to Question #136011 in Macroeconomics for Billy

Question

Consumption = 115 + 0.6Y
Investment = 550
Use the above information to answer the questions that follow:
Q.4.1 Calculate the value of autonomous spending. (3)
Q.4.2 Calculate the value of the multiplier. (3)
Q.4.3 Calculate the equilibrium level of income. (3)
Q.4.4 Is the equilibrium level of income also the full employment level of income? Explain
your answer. 3

Answer 1

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