Question
Assume the following parameters for a closed economy: C = 150 + .8(YD) I= 500 G =500T = 450 Full-employment Y = 4000 A. Calculate
Assume the following parameters for a closed economy:
C = 150 + .8(YD) I= 500 G =500T = 450 Full-employment Y = 4000
A. Calculate equilibrium income.
B. In the space below, graph the AE model and depict the economy in its initial equilibrium, as you calculated above. (You do not need to include the Consumption line).
C. At equilibrium, what is the amount of consumption spending?
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Economics
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
21st Edition
1259723224, 9781259723223
