The current level of real GDP

The current level of real GDP

In a simple economy (assume there are no taxes; thus, Y is disposable income), the consumption function is:


The current level of real GDP is $6000

At this level of real GDP, consumption will be $____ and savings will be $___ if GDP were to increase by $1000 consumption would increase by $_____ (Round your responses to the nearest dollar)

At a real GDP level of $6000, the average propensity to consume is ____ and the average propensity to save is ___. (Round your answers to two decimal to two decimal places.)

Price: £ 45

100% Plagiarism Free & Custom Written, Tailored to your instructions

Leave your Comments

Can't read the image? click here to refresh