Suppose household consumption C is:

C=$50 + 0.80Yd

And investment, I is:

I = $40

A. Find equilibrium output, Y.

B. Find the value of C at the equilibrium output.

C. Graph the Consumption function on Excel.

Suppose C = $60 +0.80Yd;

I = $50;

Y = Yd.

A. Find the saving function.

B. Find equilibrium output, Y.

C. Graph the Consumption function on Excel.

D. Graph the Saving function on Excel.

E. Determine the equilibrium of the Consumption function and Saving function by graphing the functions.

Suppose the Consumption function, C =$60 + 0.80Yd;

I =$70;

Y = Yd.

A. What happens to the equilibrium output, Y when I increase to $80.

B. Calculate the new value of Y when I = $80.

C. What happens to equilibrium output, Y when I decrease to $50?

D. Calculate the new value of Y when I = $50.

Given C=$20 +0.80Yd, I =$50, G = $20, Yd = Y - Tn, Tn = Tx - Tr, Tr = 0 and Tx=$10.

A. Find equilibrium output.

B. Find consumption and saving at equilibrium output, Y.