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 + .7Y_D

Y_D C S I MPC APC MPS APS C+I

200 36

210 36

220 36

230 36

240 36

250 36