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C = 160+0.6Yd I = 150 G = 150 T = 100 Solve for a) Equilibrium GDP (Y) b) Disposable income c) Consumption spending Solve
C = 160+0.6Yd
I = 150
G = 150
T = 100
Solve for
a) Equilibrium GDP (Y)
b) Disposable income
c) Consumption spending
Solve for
d) equilibrium output, total demand, is it equal to production?
e) assume that G is now equal to 110, solve for equilibrium output, calculate total demand
f) Assume that G =110, so output is given by answer to e). Calculate private plus public saving. Is it equal to investment?
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