15 Suppose you have the following information about a fictitious economy. Assume there are no taxes in this economy. Disposable Income and Consumption Disposable Income (dollars) $0 8,000 16,000 24,000 32,000 Consumption (dollars) $4,000 11,000 18,000 25,000 32,000 40,000 39,000 Instructions: In parts a and c, enter your answers as a whole number. In part b, round your answers to two decimal places. a. What is the equilibrium level of consumption? $ b. What is the MPC and MPS for this economy? MPC: MPS: c. What is the value of autonomous consumption for this economy? EA
15 Suppose you have the following information about a fictitious economy. Assume there are no taxes in this economy. Disposable Income and Consumption Disposable Income (dollars) $0 8,000 16,000 24,000 32,000 Consumption (dollars) $4,000 11,000 18,000 25,000 32,000 40,000 39,000 Instructions: In parts a and c, enter your answers as a whole number. In part b, round your answers to two decimal places. a. What is the equilibrium level of consumption? $ b. What is the MPC and MPS for this economy? MPC: MPS: c. What is the value of autonomous consumption for this economy? EA
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps