MACROECONOMICS CHAPTER 23 HOMEWORK Score:10 POINTS SHOW YOUR WORK FOR THE NUMERICAL PROBLEMS. Illustrate with suitable graphs wherever it is required. 1. Refer the table below and answer the questions that follow. (4 Points) Aggregate Output ($ million) Y Aggregate Consumption ($ million) C Aggregate Saving ($ million) S Planned Investment ($ million) I Aggregate Expenditure AE = C+I 2,000 1,500 700 2,400 1,800 700 2,800 2,100 700 3,200 2,400 700 3,600 2,700 700 a. Fill in the table and find the equilibrium income. b. Find the MPC, MPS and the multiplier. c. If the planned investment increases by $100 million find the new equilibrium level of income. 2. Draw the consumption function for the economy of Macroland C= 60+0.7Y with aggregate Income levels of $100, 200, 300, 400, 500 on the X axis and the corresponding aggregate consumption on the Y axis. Label the graphs and plot all points of income and consumption on the graph. (4 Points) 3. Calculate the equilibrium level of output (income) for the following economy: Consumption C = 1500+0.75Y Investment I = 500 (2 Points)