C = 100 + 0.75Y I = 25 Find Y* using the following approaches: i.Y=AE ii.Injection = Leakage Find the new equilibrium level of Y if I increased by 25

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter2: Fundamental Economic Concepts
Section: Chapter Questions
Problem 5E
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C = 100 + 0.75Y

I = 25

Find Y* using the following approaches:

i.Y=AE

ii.Injection = Leakage

Find the new equilibrium level of Y if I increased by 25

 

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