Question
Task 1 - Equilibrium in a closed economy Country X be a closed economy with public activity. It is described by the following equa- tions:
Task 1 - Equilibrium in a closed economy Country X be a closed economy with public activity. It is described by the following equa- tions: Consumption function: C(Y d) = 200 + 0, 8Y d Investment function: I = 100 Public expenditure: G = 100 Disposable income: Y d = Y T Tax revenues: T = 0, 25 Y Equilibrium condition (aggregrate demand): Y = C(Y d) + I + G a) Determine the equilibrium income Y . b) By which amount must the public state rise its expenditure to reach the full employ-ment income level of Y-F E = 1250? c) Determine the net total of the state (public accounting balance) using the terms under
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