Question

Assume the current equilibrium level of income is $200 billion as compared to the full-employment income level of $240 billion. If the mpc is 0.625, what change in aggregate expenditures is needed to achieve full employment?

Answer 1

C) equality of the MPC and MPS. ... If gross investment is $12 billion, the equilibrium level of GDP will be: A) $380. Answer: ... D) disposable income equals consumption minus