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You have been called in by the Philippines Secretary of Finance. The full-employment level of output is 124,000 pesos. She tells you that an econometrician
You have been called in by the Philippines Secretary of Finance. The full-employment level of output is 124,000 pesos. She tells you that an econometrician has provided the following model of the Philippine economy. The currency is pesos. Consumption function: C = 6,000 + 0.75Yd Investment function: I = 11,000 Government spending: G = 20,000 Net taxes: T = 16,000 Disposable income: Yd = Y - T Equilibrium: Y = C + I + G
Current equilibrium level of income is ____ pesos.
The budget deficit/surplus of the government is ____ pesos.
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