Question

Real GDP    Consumption Savings    Investment

2000 2000    0 1500

4000 3500    500    1500

6000    5000    1000    1500

8000    6500    1500 1500 (S=I at equilibrium level)

10000    8000    2000    1500

12000 9500 2500 1500

At equilibrium real​ GDP, this​ economy's average propensity to save is

Answer 1

Real GDP	Consumption	Savings	Investment	C + I
2000	2000	0	1500	3500
4000	3500	500	1500	5000
6000	5000	1000	1500	6500
8000	6500	1500	1500	8000
10000	8000	2000	1500	9500
12000	9500	2500	1500	11000

At equilibrium: C + I = Real GDP

Equilibrium Real GDP = 8000

Average propensity to save = Savings/Real GDP = 1500/8000 = 0.1875