Question

I need to make a table for part a. Thanks.

DI, C,S Tnble Homework 3B-problem questions Answer all parts to question 1, 2, and 3, Assume transfer payments are zero C-5000+02b TO G-5000 I-1000 X-1000 IM-2000 Taxes-500 a. How much is MPS (1) mps 1-npe-mpc o.a mps1-0.a-0- b. Calculate current equilibrium GDP (5) A-E CtG+I+ Ax AE Scoo to. a DI+ Seoo 000 +C1o00-20o0 AE 5000TO. alY-T) +6a00 1o0o-1000- 5o00 0-2y-0.2sco)cooot e-leo AE-9100 102 eavilibriunm REY 1 Too to.2y-0 C4) CI) c. How much is disposable income in equilibrium (2) Disposabit ci briven DI- y-T D(12375-50s)- s d. How much is Consumption in equilibrium (2) How much is Savings in equilibrium (2) e. f Now assume there is an inflationary gap of 1000, how much is full employment GDP (1) g How much is the multiplier (1)

I need help making a table in part a that is a linear table. Example is like this:

Answer 1

1) MPC = 0.2

MPS = 1-0.2 = 0.8

2) Equilibrium GDP Y = C+I+G+X-IM

or, Y = 5000+0.2DI+1000+5000+1000-2000

or, Y = 5000+0.2(Y-T)+1000+5000+1000-2000

or, Y(1-0.2) = 5000-0.2*500+1000+5000+1000-2000

or, 0.8Y = 9900

or, Y = 12,375

3) DI = Y-T = 12,375-500 = 11,875

4) Consumption = 5000 + 0.2DI = 5000+(0.2*11,875)=7,375