1.
MPC = change in C/ Change in Y
= (180-150)/ (600-500) = 0.3
In year 3, change in Y = 60
MPC = 0.3 = 60/ (change in Y)
Change in Y = 60/ 0.3 = 200
200+ 600 = 800 (C)
2. Inflation is the change in CPI from the base year. So, you calculation the change: {CPI(current) - CPI(base)}/CPI...