What does the simple keynesian multiplier equal

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Reference no: EM131483128

Question: Using the aggregate expenditures table below, answer the questions that follow.

a. Compute the APC when income equals 2,300 and the APS when income equals 2,800.

b. Compute the MPC and MPS.

c. What does the simple Keynesian multiplier equal?

d. If investment spending is equal to 120, what will be equilibrium income?

e. Using the graph below, show saving, investment, and equilibrium income.

Reference no: EM131483128

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