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Suppose the economy is characterized as follows: AE = C + I + G + (X-M) C = 700 + .75(Y - T) - 30

Suppose the economy is characterized as follows:

AE = C + I + G + (X-M)

C = 700 + .75(Y - T) - 30 (r)

I = 500 - 50(r)

G = 250

X- M = -25

T = 80

r = 5

Price level P is fixed at 1 (P=1)

Use the information above to get expressions for the consumption function and the AE equation.

The vertical intercept for the consumption function is ________.

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