[The Income-Expenditure Model Problem Set1 1. Consider the following information in the table below. Income Consumption Savings (Y) (C) (S) 1000 950 50 1100 1040 60 1200 1130 70 1300 1220 80 Given this data the consumption function can be written as: C: + Y 2. Consider the following information for Slovenia. Autonomous Consumption 250 0.25 What is the equilibrium level of GDP in the income-expenditure model? 3. Consider the following information in the table below. Income [Y] Imports [M] 1000 200 1100 220 1200 24-0 1300 260 Given this data, what is Marginal Propensity to Import [MP1]? 4. Suppose that the level of income is $1000 and the tax rate is 0.1 %. Given this data, what is the level of disposable income? Use the following information to answer questions 5 through 8: Consider the following information for Slovenia. Autonomous Consumption 430 0.25 5. What is the equilibrium level of GDP in the income-expenditure model? 6. Suppose that there is a decrease in Exports by $20. What is the new equilibrium level of GDP in the income-expenditure model? 7. What is the difference between the original and new GDP as a result of a decrease in Exports? 8. Suppose that MPC is equal to 0.8. What is the spending multiplier