Question
3) Suppose the following is true in an economy: Marginal propensity tosave= 0.75; Autonomous consumption = $12billion; Planned investment = $8billion;NX= -$2 billion;Government expenditures, transfers
3) Suppose the following is true in an economy: Marginal propensity tosave= 0.75; Autonomous consumption = $12billion; Planned investment = $8billion;NX= -$2 billion;Government expenditures, transfers and taxes = 0.
a) expression for the planned aggregate expenditures in this economy, as a function of Y.
b)Solve for the income-expenditure equilibrium level of real GDP.
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
8th Canadian Edition
134646355, 9780134842615 , 978-0134646350
