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Suppose that a closed economy with no government has the following consumption-income scheduleIncome (in million $) Consumption Expenditure (in million $) 55,000 53,500 57,000 54,700 59,000 55,900 Furthermore, the autonomous consumption is equal to Php16,000, exogenous investment is Php700,000 and exogenous government expenditure is Php650,000.
a. Find MPS (marginal propensity to save), MPC (marginal propensity to consume) and the multiplier.
b. What is the break-even level of income?
c. Would you consider the break-even point as the equilibrium point? Why or why not?
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