Question
C = 150 + .8(YD) I= 500 G =500T = 450 Full-employment Y = 4000 Equilibrium income is 3,950, Consumption spending at equilibrium is 2,950.
C = 150 + .8(YD) I= 500 G =500T = 450 Full-employment Y = 4000 Equilibrium income is 3,950, Consumption spending at equilibrium is 2,950.
Now, assume that investment spending falls by 20. First, show the decline in I on your diagram on
the previous page by adding the new (lower) aggregate expenditure line.
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Economics
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
21st Edition
1259723224, 9781259723223
