Question
Given C=$20 +0.80Yd, I =$60, G = $30, Yd = Y - Tn, Tn = Tx - Tr, Tr = $10 and Tx=$40. A. Find
Given C=$20 +0.80Yd, I =$60, G = $30, Yd = Y - Tn, Tn = Tx - Tr, Tr = $10 and Tx=$40.
A. Find equilibrium output.
B. Find consumption and saving at equilibrium output, Y.
Given C=$35 +0.80Yd, I =$70, G = $65, Yd = Y - Tn, Tn = Tx - Tr, Tr = 0 andTx=$10.
AFind equilibrium output.
B. Find consumption and saving at equilibrium output, Y.
C. Graph the consumption and savings functions on a single graph.
Suppose the Consumption function, C =$60 + 0.80Yd;
I =$70;
Y = Yd.
A. What happens to the equilibrium output, Y when I increase to $80.
B. Calculate the new value of Y when I = $80.
C. What happens to equilibrium output, Y when I decrease to $50?
D. Calculate the new value of Y when I = $50.
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
6th Canadian Edition
321675606, 978-0321675606
