What is the value of the multiplier

Reference no: EM13183813

Keynesian Economics: Suppose the following about the economy of the United States: Government spending = 660, planned investment (Ip) = 215, autonomous consumption is 200, net exports is 100 and taxes are 100. In addition, for each additional $1 of income consumers increase their consumption by $0.75 (MPC). Please answer the following questions.

1)What is the value of the multiplier?

2)What is the value of autonomous spending?

3)What is the equilibrium GDP?

Reference no: EM13183813

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