Use the following table. which represents the aggregate consumption function? Table: Individual and Aggregate Consumption Functions Current Disposable Income Consumer Spending Andy Fred Mark sO $150 $100 $200 1,000 950 800 1,100 OC= 450 + 0.7YD OC= 150 + 0.9YD OC= 250 + 0.8YD OC= 450 + 0.8YD

11:04 AM ECON 122 CAT ONE.docX Phoenix Files QUESTION ONE Is it desirable for a country to have a large gross domestic product? Explain (2 marks) QUESTION TWO You are given data on the following variables in an economy Government spending 300 Planned investment Net exports Autonomous taxes Income tax rate Marginal propensity to consume 0.5 a) Consumption (C) is 600 when income (Y) is equal to 1500. Solve for autonom ous consumption (2 ma rks) ii) 200 S 50 b) Solve for the equilibrium level of output in the following two scenarios: i) There is an income tax t=0.1, Edit 0.1 250 Q Search © | 46| 472 [ 66 c) In the economy with an income tax of 10%, what is the budget balance of the government? (2 marks) O X: × There is no income tax in the economy. Denote these two variables by Yw and YN respectively. (4 marks) d) Solve for the change in net exports that would bring the equilibrium output lev el in the economy with the income tax to the level of YN that you found in part b. specify both…

If consumption expenditure is $3100 and savings is $1800 Calculate income

The following questions refer to this table: