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Why the model is not an open economy

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Reference no: EM132605650

Question (a) (i) Explain why the model is not an open economy?

(ii) Explain investment expenditure (I) as used in the model.

Question (b) Using the consumption function, estimate the autonomous consumption; marginal propensity to consume (MPC) and the multiplier.

Question (c) Given that the value of Investment (I) is GH?100m calculate equilibrium

(i) Estimate the aggregate expenditure (Y)

(ii) Consumption expenditure (C)

(iii) Aggregate saving (S)

Reference no: EM132605650

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