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Can you help me understand this question? Consider the simplest macro model with demand-determined output. The equations are: C = 150 + 0.8 Yd ,
Can you help me understand this question?
Consider the simplest macro model with demand-determined output.
The equations are:
C= 150 + 0.8Yd,Yd = Y-T,
I= 400,G= 700,
T= .2Y,X= 130, and
IM= 0.14Y.
- What is the Marginal Propensity to Consume (MPC) in this model?
- What is the Marginal Propensity to import?
- What is the total autonomous expenditure?
- What is the equilibrium GDP?
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