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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 +0.8OY 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)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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)
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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