Consider a simple macro model with a constant price level and demand-determined output. We are given the
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Consider a simple macro model with a constant price level and demand-determined output. We are given the following equations: C = 420 + 0.9Yd, I = 200, G = 300,T = 0.2Y, X = 280, IM = 0.12Y.
a) The marginal propensity the consume (b)
b)The marginal propensity the consume out of national income
c)Equilibrium national income (Y*)
d)The marginal propensity to spend (z)
e)The trade balance at equilibrium national income. (Indicate if it's a deficit or surplus)
f) The government budget balance at equilibrium national income. (Indicate if it's a deficit or surplus)
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