The Keynes'C[k +1] = aY[k]I[k+1]=b(C[k+1]– C[k]) where a and b are parameters. The GNP Y[k] is known to be given4(10%)model foreconomy admitsandanby Y[k]=C[k]+I[k]+G[k] in which G[k] is the government expenditure. For a constantgovernment expenditure G[k]=G,, determine the equilibrium value of the GNP.

Solution - Given in the Question - C[k+1] = aY[k].................(1) I[k+1] = b(c[k+1] -…

for admits 4 (10%) The Keynes' model I[k +1]=b(C[k+1]-¶k]) where a and b are parameters. The GNP Y[k] is known to be given by Y[k]=C[k]+I[k]+G[k] in_which G[k] is the government expenditure. For a constant C[k +1]=aY[k] and an economy government expenditure G[k]=G,, determine the equilibrium value of the GNP.

for admits 4 (10%) The Keynes' model I[k +1]=b(C[k+1]-¶k]) where a and b are parameters. The GNP Y[k] is known to be given by Y[k]=C[k]+I[k]+G[k] in_which G[k] is the government expenditure. For a constant C[k +1]=aY[k] and an economy government expenditure G[k]=G,, determine the equilibrium value of the GNP.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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