I need help with macro economics!

Posted on 2013-11-21 16:56:00 in Economics by TANYA

Please tell me step by step how to obtain the answer, thank you!



In a private closed economy a) the ups is .25, b) consumption equals income at $120 bullion and, c) the level of investment is $40 billion. What is the equilibrium level of income?



A)$280 billion

B) $320 billion

C) $262 billion

D) $198 billion



Tessa's break-even level of income is $10,000 and her MPC is .75. If her actual disposable income is $16,000 her level of:



A)consumption spending will be $14,500

B) consumption spending will be $15,500

C) consumption spending will be $13,000

D) saving will be $2,500

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