PART II: EXERCISES 10 marks 1. You are given the following data for a hypothetical economy ($, bn): thosable Income (Y I!) Consumption 1C! Saving ES! 0 10 ? SO 50 ? 100 90 ? 150 130 ? 200 170 ? 250 210 ? 300 250 ? a. Complete the missing gures. b. Calculate the marginal propensity to consume (MPC) and the marginal C. propensity to save (MPS). Conrm that MPC + MP8 = 1 and AYd = AC + AS, where 'A' denotes change. Given, autonomous consumption = 400.0, marginal propensity to consume = .80, investment = 850.0, government spending = 900.0, exports = 150.0, imports = 75.0, and taxes = 0 (billion, $) 3. Write out the consumption and saving functions b. What is the level of consumption and saving if income 1,000.0 c. What is the equilibrium output (assume this is real GDP) for the economy? d. From c) above, if full-employment output is 11,2000, what type of gap exists in the economy? c. From d) above, what is the new level of investment spending required to attain full-employment equilibrium