Question
5. Consider the following macro model with demand-determined output: C = 150 + 0.9, = 0.8Y, I = 400, G = 700, T = (0.2)Y,
5. Consider the following macro model with demand-determined output:
C = 150 + 0.9,
= 0.8Y,
I = 400,
G = 700,
T = (0.2)Y,
X = 130,
IM = (0.08)Y.
a)What is the equilibrium national income (GDP)?
b) What is the margin propensity to spendMPS in this case?
b)What is the value of the multiplier?
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Introduction to Econometrics
Authors: James H. Stock, Mark W. Watson
3rd edition
133595420, 978-0138009007, 138009007, 978-0133486872, 133486877, 978-0133595420
