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C=700+0.7Yd I=450 G=500 T=350 X=400 M=300 all values in $millions a)Find the value of Marginal Propensity to Save (MPS) b)Derive the saving function from the
C=700+0.7Yd I=450 G=500 T=350 X=400 M=300 all values in $millions
a)Find the value of Marginal Propensity to Save (MPS)
b)Derive the saving function from the consumption function.
c)Calculate the equilibrium level of national income fo the above economy using AD-AS approach
d)If the full employment level of income for the economy is $4000 million is there an inflationary or deflationary gap.Why are you saying so.Explain with diagram the situation.
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