1. Assume that the level of autonomous consumption in an economy equals 600, the level of planned investment = 800.

What is the level of consumption when the level of income equals 3,200?

2.Assume that the level of autonomous consumption in an economy equals 600, the level of planned investment = 500.

Calculate the marginal propensity to consume, if the level of income equals 3,200?

3.If the marginal propensity to save is 0.1.What is the size of the expenditure multiplier?

Provide answer to one decimal point.

4.Assume that all taxes in the economy are autonomous totalling 50 million, autonomous consumption is 50 million, and the marginal propensity to save is 0.5.

What is the level of consumption when the level of income is 850?

5.Assume in a private economy that the equilibrium level of income is $380 and the MPS is 0.25. Now suppose the government collects autonomous taxes of $50 and spends the entire amount. Calculate the new equilibrium level of income.

6.Assume that the marginal propensity to consume equals 0.65, the income tax rate equals 0.3, and the marginal propensity to import (nx) equals 0.1. Calculate the marginal leakage rate.Provide your answer to 2-decimal points.

7.Consider an economy with the following values:

Autonomous Consumption = 950

Autonomous Taxes = 1,750

Planned Investment = 3,000

Government Expenditure = 2,050

Autonomous Net Exports = 350

Marginal Propensity to Consume = 0.7

Marginal tax rate = 0.18

Marginal propensity to import = 0.08

Calculate the equilibrium level of income.Provide answer to 2 decimal points

8.Suppose that equilibrium income is 3200, the marginal propensity to save is 0.2, the marginal tax rate is 0.15 and the marginal propensity to import is 0.1.

If the natural level of output/income is equal to 3620, by how much will autonomous taxation need to change to close the gap and move the economy to the natural level of output/income?

Provide answer to 1 decimal point.

If a decrease in autonomous taxation is required you must place a negative sign in front of your answer.