Question
In a certain economy, the components of planned spending are given by = 700 + 0.1( ) 400 = 300 400 = 200 = 50
In a certain economy, the components of planned spending are given by = 700 + 0.1( ) 400
= 300 400
= 200
= 50
= 0
= = 100
Find the relation of planned aggregate expenditure () to the real interest rate, , and output, , in the economy. Find exogenous expenditure and induced expenditure?
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
