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(b) Calculate equilibrium GDP. (Y = 700) (c) Calculate equilibrium consumption and saving. (C = 620 and Se = 80) (d) What is the magnitude
(b) Calculate equilibrium GDP. (Y = 700) (c) Calculate equilibrium consumption and saving. (C = 620 and Se = 80) (d) What is the magnitude of the multiplier in KU? (2.5) (e) If planned investment increases by 20, calculate the change in equilibrium GDP. (AY = 50) (f) The following table shows three rounds of multiplier process for an increase in planned investment of 20. Calculate the missing numbers. Multiplier Process Rounds 1 2 AIF 20 AC AY (Round 1 AC = 0, AY = 20; Round 2 AIF = 0, AC = 12, AY = 12; Round 3 AIF = 0, AC = 72, AY =7-2)
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