Question 1
If
S = -200 + 0.2
Y and
I = 100, then the equilibrium level of income is
◦ 1,200.
◦ 1,500.
◦ 3,000.
◦ 4,000.
Question 2
If
C = 1,500 + 0.75
Y and
I = 500, then planned saving equals planned investment at aggregate output level of
◦ 2,666.67.
◦ 8,000.
◦ 10,000.
◦ 20,000.