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2. Income - Expenditure Problem: (Modules 28 & 29) Below is the data for an income-expenditure model. Use the table below to answer the following
2. Income - Expenditure Problem: (Modules 28 & 29) Below is the data for an income-expenditure model. Use the table below to answer the following questions. Assume that taxes, government purchases and net exports are all $0. Remember that prices are fixed in the income-expenditure model, so we don't have to worry about them changing in this model. (15 pts.) a. Complete the table. Use the following formulas: . AEplanned = C + 1planned GDP = AEplanned + Iunplanned Or Iunplanned = GDP - AEplanned GDP YD C Iplanned AEplanned lunplanned 0 0 100 320 300 300 340 320 600 600 580 320 900 900 820 320 1200 1200 1060 320 1500 1500 1300 320 1800 1800 1540 320 2100 2100 1780 320 2400 2400 2020 320 b. Find the MPC for this economy. Remember that A means change, and MPC = ; A in consumtion Ain disposable income Also remember to find the change in consumption, calculate how much C changes from one row to
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