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Econ 2 Macroeconomics Homework #6 Name: 1. Investment spending rises by $200. Make a table showing the effect on I, C, and GDP for each of 3 rounds and the total effect after all possible rounds are completed if the MPC = 0.6 Use the table l present in my video lectures #1 and #2 as your guide for format. 2. Draw an AD/AS diagram showing the effect ofthe above on real GDP if we are far to the left 0an so the SRAS curve is flat. Be sure to include the numbers from the table on your diagram in their correct places. Start with AD; and Q\Start with an increase of $100 in investment and MPC = 0.8 AI AC A GDP Round 1 $100 $0 $100 Round 2 $0 $80 $80 Round 3 SO $64 $64 Round 4 $0 $52 $52 More Rounds . .. . . . . . . Total $100 $400 $500 ideo 1