External trade and other economic activities of  X Y Z  economy was at equilibrium when both MPC and APC were 5/12 in the year 2023. And the actual level of consumption was 2 billion Naira. 

(A). Determine the value of the multiplier in the economy.

(B). Calculate the total income in the year 2023.

To solve the questions regarding the X Y Z economy, we will use the concepts of the Marginal Propensity to Consume (MPC) and the Average Propensity to Consume (APC) to find the required values.

### (A) Determine the value of the multiplier in the economy.

The formula for the multiplier (k) is given by:

\[
k = \frac{1}{1 - MPC}
\]

Given that \( MPC = \frac{5}{12} \):

\[
k = \frac{1}{1 - \frac{5}{12}} = \frac{1}{\frac{7}{12}} = \frac{12}{7} \approx 1.714
\]

Thus, the value of the multiplier is approximately **1.714**.

### (B) Calculate the total income in the year 2023.

The relationship between total income (Y), consumption (C), and the multiplier (k) can be expressed as:

\[
Y = C + I
\]

However, since we are not given investments (I) directly, we can use the formula for total income in terms of consumption and the multiplier:

\[
Y = k \times C
\]

Given that the actual level of consumption \( C = 2 \) billion Naira:

\[
Y = 1.714 \times 2 \text{ billion Naira} \approx 3.428 \text{ billion Naira}
\]

Therefore, the total income in the year 2023 is approximately **3.428 billion Naira**.

### Summary of Results:
- **Multiplier (k):** 1.714
- **Total Income (Y):** 3.428 billion Naira

Do you want any details or have any questions? Here are some related questions you might find interesting:

1. How does a change in MPC affect the multiplier?
2. What is the significance of the APC in economic analysis?
3. Can you explain the relationship between consumption and total income in an economy?
4. What factors can influence the MPC in an economy?
5. How would a decrease in consumption affect the total income in this scenario?

**Tip:** Understanding the concepts of MPC and APC can help you analyze the impact of fiscal policies on an economy's consumption and income levels.

External trade and other economic activities of X Y Z economy was at equilibrium when both MPC and APC were 5/12 in the year 2023. And the actual level of consumption was 2 billion Naira. (A). Determine the value of the multiplier in the economy. (B). Calculate the total income in the year 2023.

Discover how to determine the multiplier and total income for the X Y Z economy, where MPC and APC were both 5/12 and consumption was 2 billion Naira in 2023. This guide covers essential economic concepts and formulas.

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