Assume the level of investment is $8 billion and independent of the level of total output.Complete the following table and answer the following questions about this private closed economy. 
(a) What are the sizes of the MPC, MPS, and multiplier in this economy?
(b) If full employment in this economy is 140 million, will there be a recessionary or inflationary gap? Explain the consequences of this gap.(c) Using the multiplier concept, determine what change in investment is needed to eliminate the output gap.(d) If full employment in this economy is 110 million, will there be an inflationary or recessionary gap? Explain the consequences of this gap.(e) Using the multiplier concept, determine what change in investment is needed to eliminate the output gap from part (d).
Definitions:
Beginning Paragraph
The introductory section of a piece of writing, designed to grab the reader's attention and outline the main topic or argument.
Evidence
Information or details that support a statement, theory, or finding, making it more credible or comprehensible.
Counterproposal
A proposal made in response to a previous one, typically with changes to terms or conditions.
Eliminate Need
The process of removing or reducing a requirement or necessity for something.
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