Q.2.1 Calculate the level of autonomous spending in this economy. Q.2.2 Calculate the size of the multiplier (Note: Round your answer to two decimal places) Q.2.3 Calculate the equilibrium level of income

Use the figure to calculate the marginal propensity to consume (MPC) between point A and point B. MPC = (Enter your response as a real number rounded to two decimal places.) C Real consumption spending ($ billions) Consumption and National Income $3,750 $2,250 B $3,000 $5,000 Real national income or real GDP ($ billions) C

Given the information below, answer the questions that follow. C = $40 + 0.75Y             I = $30             G = $40               X – M = $10   a) What is the equilibrium GDP?  Explain why $550 is not the equilibrium. b) What is the marginal propensity to consume (MPC) in this question? (Explain) c) What is the multiplier in this question and explain the significance of the multiplier?

Using the table below to answer the following questions. Assume all values represent trillions of dollars.            Construct a graph of the Aggregate planned expenditure  What is the equilibrium expenditure?  Explain what happens at a real GDP of $4 trillion dollars. (Note the aggregate  expenditures and the effects on inventories)  What are your total autonomous expenditures?  What is the marginal propensity to consume?  Ignoring imports and income taxes, what is the multiplier?  If investment increases by $1.5 trillion, what is the change in real GDP?