You are given the following information about a model economy. The autonomous part of

consumption is R100 billion. The marginal propensity to consume is equal to 0,8.

Investment is R460 billion. Government purchases of goods and services are

R400 billion. The tax rate is equal to 0,25. Imports are autonomous, and are equal to

R347 billion, and exports are equal to R347 billion. The equilibrium level of consumption

is ________, and the equilibrium level of income is ________.

(***)

a.

R100 billion; R960 billion

b.

R100 billion; R1 600 billion