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Suppose that the following equations describe an open economy: C = 10 + (0.5) (Y-T), T = 10, 1= 20, G = 10, X
Suppose that the following equations describe an open economy: C = 10 + (0.5) (Y-T), T = 10, 1= 20, G = 10, X = 15, M = (0.05)Y + 10 E. and = 0.5, where & is the real exchange rate. (a) Find the multiplier and equilibrium GDP. (10 Points) (b) Find the equilibrium net export value. (5 Points) (c) What is the income level that balances trade? (5 Points) M
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a To find the multiplier and equilibrium GDP we first need to derive the equation for aggregate dema...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
