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You are given the following income-expenditures model for an economy :    Consumption C = 300...

You are given the following income-expenditures model for an economy :   

Consumption C = 300 + .64Yd

Tax (T) = $60

Government expenditure G = $100

Investment (I) = $120

From above data calculate the follows:

  1. Equilibrium level of income
  2. At the equilibrium level of income, what is the amount of consumption?
  3. At the equilibrium level of income, what is the amount of savings?
  4. Marginal Propensity of Saving (MPS)
  5. Tax multiplier in this economy?
  6. Budget deficit
  7. Unplanned inventory
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