Answer In Macroeconomics For Aldah #92533 - Assignment Expert

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1. The value of the marginal propensity to consume is: MPC = 0.9., then the value of the multiplier in this economy is:

1/(1-0.9) = 10

2 / The equilibrium level of output is:

Y = C+ I = 100 + 0.9Y + 50,

0.1Y= 150,

(1800-1500)/(I-50) = 10

I - 50 = 30

I = 80 - the level of investment spending that would create full employment in this economy

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