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Problem Set #4 Sp 2022 ECON 2205 ( 19 pts) This problem set will give you an opportunity to work on some problems from Modules
Problem Set #4 Sp 2022 ECON 2205 ( 19 pts) This problem set will give you an opportunity to work on some problems from Modules 24, 27-29. You can print this and do your work right on the paper ifthat helps. 1. (Module 27, 28 & 29) Suppose GDP is $9500, and we can assume that there are no taxes, so GDP = YD. Suppose autonomous consumption (A) is $400, planned investment spending is $1200, and the marginal propensity to consume is 0.6. (4 pts.) a. Calculate the multiplier. Show your work. b. Calculate Consumption when GDP is $9500. Show your work and use the formula C=A+(MPCxYD) c. Calculate AEplanneu when GDP is $9500
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