2 Macroeconomic questions

Econ 2 Macroeconomics Homework #6 Name: 1. Investment spending rises by $200. Make a table showing the effect on I, C, and GDP for each of 3 rounds and the total effect after ali possible rounds are completed if the MPC : 0.6 Use the table I present in my video lectures #1 and #2 as your guide for format. 2. Draw an ADKAS diagram showing the effect ofthe above on real GDP if we are far to the left of QM so the ERAS curve is flat. Be sure to include the numbers from the table on your diagram in their correct places. Start with ADu and Qu, then show the effect of rounds l and 2 with AD., (2., AD:. and Q3. After you have done the rst 2 rounds, skip ahead to showing the nal AD curve and the final Q(AD1-' and QF). Remember to include the numerical distance covered from Q\" to Q}: on your diagram. I did this in video 2. so review that help you with this. Think carefully on whether the AD curve is shifting to the right or to the left. Remember, shifts to the right are increases and to the left are decreases