4 In a simple economy (assumé there are no taxes; thus, Y is disposable income), the consumption function is: C = 500 +0.8OY The current level of real GDP is $5000. At this level of real GDP, consumption will be $ and savings will be $ If GDP were to increase by $1000, consumption would increase by S (Round your responses to the nearest dollar) At a real GDP level of $5000, the average propensity to consume is and the average propensity to save is (Round your answers to two decimal places)
4 In a simple economy (assumé there are no taxes; thus, Y is disposable income), the consumption function is: C = 500 +0.8OY The current level of real GDP is $5000. At this level of real GDP, consumption will be $ and savings will be $ If GDP were to increase by $1000, consumption would increase by S (Round your responses to the nearest dollar) At a real GDP level of $5000, the average propensity to consume is and the average propensity to save is (Round your answers to two decimal places)
Chapter1: Making Economics Decisions
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![4. In a simple economy (assumé there are no taxes, thus, Y is disposable income), the consumption function is.
C= 500 +0.80Y.
The current level of real GDP is $5000.
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 $5000, the average propensity to consume is
and the average propensity to save is
(Round your answers to two decimal places)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04007c9e-6b2a-457d-a3ae-47a55257b364%2F4f5ee40d-7d4d-4659-8b75-263351870ed4%2Foy9y7gf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4. In a simple economy (assumé there are no taxes, thus, Y is disposable income), the consumption function is.
C= 500 +0.80Y.
The current level of real GDP is $5000.
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 $5000, the average propensity to consume is
and the average propensity to save is
(Round your answers to two decimal places)
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