In the U.S. economy, suppose that the aggregate consumption function is estimated to be:

C = 0.6 Y

and private investment, government purchases of goods and services, and net exports total $2,200 billion.

1. Determine Gross Domestic Product (GDP) for the income levels shown in the table.

2. What is the numerical value of the marginal propensity to consume (mpc)?

 3. If private investment rises by $100 billion, by how much will equilibrium national income rise?