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1. (14 points) Answer the next questions on the basis of the following data: Y C (ba $) (ba $) 40 44 50 50 60
1. (14 points) Answer the next questions on the basis of the following data: Y C (ba $) (ba $) 40 44 50 50 60 56 70 62 80 68 90 74 100 80 a) If investment is $4 bn, government expenditure is $10 ba, exports are $20 ba and imports are $22 ba, what is the equilibrium level of GDP? b) What are the values of MPC and multiplier in this economy? Prove all your answers with calculations
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