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5. The AE diagram below shows the consumption function of an economy. (a) What are the MPC, MPS, and multiplier? E 45 (b) What are
5. The AE diagram below shows the consumption function of an economy. (a) What are the MPC, MPS, and multiplier? E 45 (b) What are the savings when Y=100, 200, 300? 100 80- 100 200 Y S/IA (c) What are the consumption function and saving function? 20- 100 (d) Draw the saving curve in the S/I diagram above. (e) If I=20, (i) Draw the AE curve in the AE diagram above and the investment curve in the S/I diagram above. (ii) What are the unplanned investment when Y=100, 200, 300? (iii) What are the output, consumption and saving at the equilibrium
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