Answer Happy

Question Tow: (24 marks) (B3, D2, D4) Given the consumption, Investment, Government spending, assuming this country operates under closed economy and not dealing with the rest of the world as in the table below Y CGO 0 160 10 301 100 2201 2002800 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 16001 1700 1800 1900 20001 Instructions: 1. Using excel, find the equilibrium consumption. (1 marks) 2. Show the range of income at which saving is negative and the range of income at which saving is positive. (2 marks) 3. Write consumption function, saving function and aggregate expenditure function (3 marks) 4. Using excel, find the equilibrium expenditure. (2 marks) 5. Show the range of income at which unplanned inventory is negative and the range of income at which unplanned inventory is positive. (2 marks) 6. Using excel Show new equilibrium expenditure if autonomous investment increases by $80 at every price level. (2 marks)