00:01
So here we're doing some macro accounting, right? we have a big table that i need to replicate to fill in the blanks between y, c, planned investment, ip, government purchases, g, net exports, aggregate expenditure, and change in inventories.
00:17
1, 2, 3, 4, 5, 6, 7.
00:21
So we have five levels of output 800, 900, 1000, 1100, and 1200.
00:30
And we're given some information to start 720, 810.
00:35
So all of these are always 180.
00:38
So i'm just going to say this is always 180.
00:43
This is always 120.
00:46
This is always minus 220.
00:48
Right? those are always true.
00:51
We need to fill in the columns.
00:53
So the first thing is, we know that the marginal propensity to consume is the change in consumption over the change in income.
00:59
If i look right here, i see that the change in consumption is 90, the change in income is 100.
01:06
So my marginal propensity to consume is 0 .9, right? that means that i always am spending 90 % of extra dollars.
01:15
So that plus 90 keeps getting repeated.
01:19
Every time i go up by 100, i get 90 more consumption.
01:22
So this is 990.
01:24
And this is going to be 1080...