Question
Suppose the consumption function is given by C left parenthesis Y right parenthesis equals 50 plus 0.5 left parenthesis Y minus T right parenthesis, where
Suppose the consumption function is given by C left parenthesis Y right parenthesis equals 50 plus 0.5 left parenthesis Y minus T right parenthesis, where Y represents income and T represents net taxes. Suppose that the level of government expenditure, G, is 200; net taxes, T, are 200; planned investment, I, is 400. The equilibrium level of output is:
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Managerial Economics and Strategy
Authors: Jeffrey M. Perloff, James A. Brander
2nd edition
134167879, 134167872, 9780134168319 , 978-0134167879
