Question
Q5. If the consumption function of an economy is given by C = 100+0.85Yd:(5) a)And govt is considering raising its spending by $25b, then determine
Q5. If the consumption function of an economy is given by C = 100+0.85Yd:(5)
a)And govt is considering raising its spending by $25b, then determine the change in GDP.
Ans:
b)And govt is considering cutting taxes by $30b then calculate the change in GDP
Ans:
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Microeconomics Principles, Problems and Policies
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
20th edition
978-0077660819, 77660811, 978-1259450242
