Name: Section: T.A. Name 180.101 ELEMENTS OF MACROECONOMICS Fall, 2011Problem Set #2Prof. Louis J. MacciniINSTRUCTIONS: Above, write your name, section number and T. A. name. Answer each question in the space provided, or on the back of the same sheet. 1. Consider the following data on an economy: Output Consumption Investment 2000 1600 600 2500 2000 600 3000 2400 600 3500 2800 600 4000 3200 600 a.What is the equilibrium level of output for this economy? Show your calculations and explain your answer.
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b.What is the equilibrium level of income for this economy? Do you have enough information to calculate it? If so, do so. If not, what additional information do you need? Carefully explain your answer. c.What is the marginal propensity to consume in the above economy? Show your calculations and explain your answer.