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Given the following consumption function, disposable income levels and investment, calculate the consumption, savings, marginal and average propensities to consume, the marginal and average propensities
Given the following consumption function, disposable income levels and investment, calculate the consumption, savings, marginal and average propensities to consume, the marginal and average propensities to save and aggregate demand.Graph the consumption function and equilibrium income.If the government decides to move the economy to potential GDP at 270, how much must investment change by to make this happen?
C= 33 + .7YD
YDCSIMPCAPCMPSAPSC+I
20036
21036
22036
23036
24036
25036
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