Find the equilibrium level of income (Ye), given when C = 125 + 0.8Y, I = 45,

Question:

Find the equilibrium level of income (Ye), given

when C = 125 + 0.8Y, I = 45, and G = 90.
From Problem 4.15, we know that the reduced form equation is

and when b = MPC = 0.8, the multiplier 1/(1 –

b) = 5. Using this knowledge, we can write immediately,

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Schaum S Outline Of Mathematical Methods For Business Economics And Finance

ISBN: 978-1264266876

2nd Edition

Authors: Luis Moises Pena Levano

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Question Posted: Sep 20, 2024 06:03 AM

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Find the equilibrium level of income (Ye), given when C = 125 + 0.8Y, I = 45,

Question:

=C+I+G

Step by Step Answer:

Schaum S Outline Of Mathematical Methods For Business Economics And Finance

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