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What is the value of autonomous consumption

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Reference no: EM131778338

Question: Use the information in the following table to answer the following questions.

Draw a graph by using the numbers from the above table. Carefully label the two axes, the 45-degree line (potential GDP), the AE curve, and the equilibrium level of real GDP. If the potential real GDP is $750, and the economy is in a recession. Show the GDP gap and recessionary gap in the graph.

Y

C

I

G

X

$100

$120

$20

$30

-$10

$300

$300

$20

$30

-$10

$500

$480

$20

$30

-$30

$700

$660

$20

$30

-$50

a) What is the value of autonomous consumption?

FOR B & C (if the potential real GDP is $750)

b) What is the GDP gap?

c) What is the recessionary gap?

Reference no: EM131778338

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