Consider an economy in which all taxes are au- tonomous and the following values of autonomous consumption, planned investment, government expenditure, autonomous taxes, and the marginal propensity to consume are given: ca=1,400 ip=1,800 g=1,950 ta=1,750 c=0.6 (a) what is the level of consumption when the level of income (y) equals $10,000? (b) what is the level of saving when the level of income (y) equals $10,000? (c) what is the level of planned investment when the level of income (y) equals $10,000? what is the level of actual investment? what is the level of unintended inventory investment? (d) show that injections equal leakages when income (y) equals $10,000. (e) is the economy in equilibrium when income (y) = $10,000? if not, what is the equilibrium level of income for the economy described in this question?
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