Level of consumption at the equilibrium level of income

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Reference no: EM139340

Q1. If the college puts a rent ceiling in rooms of $650 a month, Illustrate what is the rent and Explain how many rooms are rented? Is the on-campus housing market efficient?

Q2. An economy is characterized by the following relationships:

C=500 + 0.6Y
I = 300

a)Plot the aggregate expenditure and aggregate provide curves for incomes ranging from 500 to 3,000.

b) Compute the equilibrium level of income.

c) Illustrate what is the level of consumption at the equilibrium level of income?

d) Compute the marginal propensity to save for this economy.

Reference no: EM139340

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