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Consider the following two sector economy: C=100+0.8Y Ip=50 Suppose that autonomous (or exogenous) consumption in the economy decreases to 80 then: a. Equilibrium output in
Consider the following two sector economy: C=100+0.8Y Ip=50 Suppose that autonomous (or exogenous) consumption in the economy decreases to 80 then: a. Equilibrium output in the economy falls by 100 b. This is an example of the paradox of thrift c. The multiplier in this economy is equal to 5 d. Equilibrium consumption falls from 700 to 600 e. All of the other answers are correct
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