Question
An economy is described of the following equations: C=1800+0.6(Y-T) I=900 G=1500 NX=100 T=1500 Y*=9000 a) Find an equation linking aggregate demand to output. b) Find
An economy is described of the following equations:
C=1800+0.6(Y-T)
I=900
G=1500
NX=100
T=1500
Y*=9000
a) Find an equation linking aggregate demand to output.
b) Find autonomous aggregate demand and induced aggregate demand.
c) What is the output gap?
d) What happens to the equilibrium if autonomous aggregate demand increase by $20.
Recalculate the output gap.
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The Rise And Fall Of Neoliberal Capitalism
Authors: David M Kotz
1st Edition
0674725654, 9780674725652
