Consumption function: C=500+0.8Yd , net tax: T=500, government spending: G=500, investment: I=1200, export: X=500 and imprt: M=700. According to this; Find the change in equilibrium level of output(Ye) if government spending increase 200. Use government spending multiplier.
Consumption function: C=500+0.8Yd , net tax: T=500, government spending: G=500, investment: I=1200, export: X=500 and imprt: M=700. According to this; Find the change in equilibrium level of output(Ye) if government spending increase 200. Use government spending multiplier.
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 13SQ
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Consumption function: C=500+0.8Yd , net tax: T=500, government spending: G=500, investment: I=1200, export: X=500 and imprt: M=700. According to this;
Find the change in equilibrium level of output(Ye) if government spending increase 200. Use government spending multiplier.
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