Question
An economy is defined by the following equations: C=500+0.3(Y-T) I=300+0.2Y T=1000, G=2000 The government increases G by 100, what effect will this increase of G
An economy is defined by the following equations:
C=500+0.3(Y-T)
I=300+0.2Y
T=1000, G=2000
The government increases G by 100, what effect will this increase of G have on equilibrium output?
none is correct
increase by 500
increase by 200
increase by 100
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Economics
Authors: R. Glenn Hubbard
6th edition
978-0134797731, 134797736, 978-0134106243
