Business, 06.11.2019 21:31 AWFHayami

Acountry is closed. it has no government sector, and its aggregate price levels and interest rates are fixed. furthermore, the marginal propensity to consume is constant and the country's consumption function is as follows: c = 200 + 0.75yd, where yd is disposable income and c is consumption. assume that planned investment equals 75. when real gdp equals $900:
a. planned investment equals $900.
b. unplanned inventory investment is negative.
c. the economy is in income–expenditure equilibrium.
d. autonomous consumption equals $900.

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Acountry is closed. it has no government sector, and its aggregate price levels and interest rates a...

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