Given the data below solve a-e AD = C + I + G + NX I =
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Question:
Given the data below solve a-e
AD = C + I + G + NX I = 600 - 40i M = 1400
C = 200 + (4/5)YD G = 240 P = 2
YD = Y - TA NX = - 40 md = (1/3)Y + 400 - 20 i
TA = (1/4)Y
a. Solve for the equilibrium level of Y and i
b. Solve for the equilibrium level of C
c. Solve for the equilibrium level of YD
d. Solve for the equilibrium level of S
e. What will be the level of crowding out if G increases by 25?
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