Answer Happy

Question Three: (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 Instructions: Y 0 100 200 300 400 500 600 700 800 900 1000 с 20 100 G 15 ī 25 Using excel, find the equilibrium consumption. (1 marks) Show the range of income at which saving is negative and the range of income at which saving is positive. (2 marks) Write consumption function, saving function and aggregate expenditure function (3 marks) Using excel, find the equilibrium expenditure. (2 marks) Show the range of income at which unplanned inventory is negative and the range of income at which unplanned inventory is positive. (2 marks) Using excel Show new equilibrium expenditure if autonomous investment increases by $20 at every price level. (2 marks)