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Instructions Here are 3 different Keynesian economies. Each is a simple 2-sector model - just households and business firms. For each economy, identify: A. The
Instructions Here are 3 different Keynesian economies. Each is a simple 2-sector model - just households and business firms. For each economy, identify: A. The marginal propensity to consume B. The level of autonomous consumption C. The level of income at which the economy is in equilibrium. ECONOMY #1: When disposable income = 600, consumption = 600, planned investment = 600 When DI = 1200, C = 1100, Ip = 600 When DI = 1800, C = 1600, Ip = 600 When DI = 2400, C = 2100, Ip = 600 MPC = Autonomous consumption = Equilibrium level of income =[ ECONOMY #2: When disposable income = 1200, consumption = 1100, planned investment = 900 When DI = 2200, C = 1900, Ip = 900 When DI = 3200, C = 2700, Ip = 900 When DI = 4200, C = 3500, Ip = 900 When DI = 5200, C = 4300, Ip = 900 MPC = Autonomous consumption = Equilibrium level of income = ECONOMY #3: When disposable income = 200, saving = -50, planned investment = 200 When DI = 400, S = 0, Ip = 200 When DI = 600, S = 50, Ip = 200 When DI = 800, S = 100, Ip = 200 MPC =C Autonomous consumption = Equilibrium level of income = [
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