In a simple economy (assume there are no taxes; thus, Y is disposable income), the consumption function is: C=200+0.80Y. The current level of real GDP is $3000. At this level of real GDP, consumption will be $ nearest dollar.) At a real GDP level of $3000, the average propensity to consume is and savings will be $ If GDP were to increase by $1000, consumption would increase by $ and the average propensity to save is (Round your responses to the (Round your answers to two decimal places.)

In a simple economy (assume there are no taxes; thus, Y is disposable income), the consumption function is: C=200+0.80Y. The current level of real GDP is $3000. At this level of real GDP, consumption will be $ nearest dollar.) At a real GDP level of $3000, the average propensity to consume is and savings will be $ If GDP were to increase by $1000, consumption would increase by $ and the average propensity to save is (Round your responses to the (Round your answers to two decimal places.)

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 15E

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