Question
Suppose an open economy is described by the following equations: C = C 0 + MPC (Y-T) = 100 + 0.4 (Y-T) Initially the following
Suppose an open economy is described by the following equations:
C = C0+ MPC (Y-T) = 100 + 0.4 (Y-T)
Initially the following values hold: I = 250 G = 300 T = 200 NX = 0
What is the equilibrium Y?
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr
5th edition
73375829, 978-0073375823
