Unformatted text preview: Co = 50, Io = 30, b = 0.8 (a) Find and show the equilibrium output in this economy using an AE graph. (b) If autonomous consumption increases by 20, what will be the new level of output? What will be the level of private saving? (c) Instead of changing autonomous consumption by 20, what value of MPC will achieve the same new equilibrium? ECON105 week 2 questions Eldar Sehic SFU 2010-1...
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- Spring '10
- Macroeconomics, equilibrium level, autonomous consumption increases