Please solve the 4th question...!!
Dear Student,
I=40
MPC=0.8
C=60+0.8Y
Regards
I=40
MPC=0.8
C=60+0.8Y
Income(Y) | Consumption(60+0.8Y) | Saving(Y-C) | Investment | AD(C+I) | AS(=Y) |
0 | 60 | -60 | 40 | 100 | 0 |
100 | 140 | -40 | 40 | 180 | 100 |
200 | 220 | -20 | 40 | 260 | 200 |
300 | 300 | 0 | 40 | 340 | 300 |
400 | 380 | 20 | 40 | 420 | 400 |
500 | 460 | 40 | 40 | 500 | 500 |
600 | 540 | 60 | 40 | 580 | 600 |
Regards