Use the graph to answer the questions that follow. a.What is the value of the MPC? b.What is the value of the MPS? c.What is the value of the multiplier? d.What is the amount of unplanned investment at aggregate output of 300, 900, and 1,300?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Use the graph to answer the questions that follow.

a.What is the value of the MPC?
b.What is the value of the MPS?
c.What is the value of the multiplier?
d.What is the amount of unplanned investment at aggregate
output of 300, 900, and 1,300?

45° line
AE = C+I
1200
450
300
900
1,300
Aggregate output, Y
Planned aggregate expenditure, AE
Transcribed Image Text:45° line AE = C+I 1200 450 300 900 1,300 Aggregate output, Y Planned aggregate expenditure, AE
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