Please complete the problem set that is attached and upload for grading MACRO ECONOMICS EXERCISE

Please complete the problem set that is attached and upload for grading

MACRO ECONOMICS EXERCISE

CHAPTER 9

Given the following information about a hypothetical economy, complete the table below.  Graph the consumption function. (Include a 45 degree line and indicate the level of equilibrium GDP)

Assume Gross Private Domestic Investment “I” = $160

GDP=DI                 C                S                  I                 Aggregate Demand

800                         840         ____          ______              ________

900                         920        ____          ______              ________

1500                  1400       _____         ______             _________

1800                   1640         _____         ______            __________

2000                   1800        _____         _______          __________

2400                  2120       _____          ______            __________

Plot the 45 degree line and the Consumption Function.

Break Even is at $ _________

Numerically, given only C + I = AD in the economy, the Macro Economic Equilibrium is at $ ________

Given this information, calculate the MPC and MPS

MPC = ________

MPS = _________