# Question: using the equation c a by where y gdp...

###### Question details

Using the equation( C= a + bY) where Y= GDP = C= 100 + .8Y

Fill out the table below

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GDP Consumption Savings

0

100

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300

400

500

600

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800

Using **graph paper** plot the function C= 100+ .8Y
(see figure 12-3 and 12-4 and 12-6). You should plot both axis in
the same denomination (if one square= 100 on the vertical, 1 square
will also equal 100 on horizontal axis). Include a 45 degree
reference line showing equilibrium between the vertical and
horizontal axis. The consumption function will cross the 45 degree
line at equilibrium.

At the bottom of the graph, plot the savings function.