2. Assume the following prevails in Pleasantville: Y = C + I + G C = 500 +0.8(Y T) I = 300 G = 700
2. Assume the following prevails in Pleasantville: Y = C + I + G C = 500 +0.8(Y T) I = 300 G = 700 T = 0.25Y a. Determine the marginal propensity to consume b. Calculate the equilibrium level of national income using the income expenditure approach and the leakage injection approach I 0. Determine the size of the multiplier d. Draw a well labelled income- expenditure diagram to show this ...'| equilibrium
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