Let Y be GNP in billions of dollars. If

C = 300 + 0.67 Y

I = 200

1. What is MPC?
2. Solve Y = C + Ito get Y_e
3. Use the diagram showing the intersection of the aggregate demand (C + I ) with aggregate supply (the 45 degree line) to get the same equilibrium income.
4. Identify initial spending, induced spending, and total spending.