Question
Please show your work C = 300 + 0.8Yd; C = consumption function; Yd (Y-T) = disposable income I = 200; I = Investment G
Please show your work
C = 300 + 0.8Yd; C = consumption function; Yd (Y-T) = disposable income I = 200; I = Investment G = 400; G = Government expenditure T = 200; T = Tax revenue Also assume that Yf = Full employment GDP (Potential GDP) = 5,000
Q:. The equilibrium GDP level (income) is _________. Hint: Ye = C+I+G
a. 2,850
b. 3,700
c. 3,145
d. 3,800
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Technical Change, Relative Prices, And Environmental Resource Evaluation
Authors: V Kerry Smith
1st Edition
1317358570, 9781317358572
