Answered: For the following economy, find the…

For the following economy, find the equilibrium level of income. C = 10 + 0.75Y I = 50 – 5r r = 25 - MS G = 20 MS = 20 (assume price level, P = .5)

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 16E

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Question

For the following economy, find the equilibrium level of income.

C = 10 + 0.75Y

I = 50 – 5r

r = 25 - MS

G = 20

MS = 20

(assume price level, P = .5)

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