You are given the following information about a closed economy with no government:

Consumption = 115 + 0.6Y

Investment = 550

Use the above information to answer the questions that follow:

Q.4.1 Calculate the value of autonomous spending. (3)

Q.4.2 Calculate the value of the multiplier. (3)

Q.4.3 Calculate the equilibrium level of income. (3)

Q.4.4 Is the equilibrium level of income also the full employment level of income? Explain

your answer.

(3)

Q.4.5 Identify any three nonincome determinants of consumption. (3)