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Nuisness

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Submitted By charle509p
Words 1062
Pages 5
28-2 (Key Question) Assuming the level of investment is $16 billion and independent of the level of total output, complete the following table and determine the equilibrium levels of output and employment in this private closed economy. What are the sizes of the MPC and MPS?

| | | | |
|Possible levels |Real domestic | | |
|of employment |output (GDP=DI) |Consumption |Saving |
|(millions) |(billions) |(billions) |(billions) |
| | | | | | |
| | | | | | |
|40 |$240 | |$244 | |$ _____ |
|45 |260 | |260 | |$ _____ |
|50 |280 | |276 | |$ _____ |
|55 |300 | |292 | |$ _____ |
|60 |320 | |308 | |$ _____ |
|65 |340 | |324 | |$ _____ |
|70 |360 | |340 | |$ _____ |
|75

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