OutputTaxesDisposable IncomeConsumption SpendingSavingInvestmentGovernmentAggregateExpenditure5000100040004000-500dis saving750750550070001000600055000750750700090001000800070005007507508500 Given the model for the Mary Island economy calculate the equilibrium level of income. C = 100 + .7YdG = 700T = 500I = 200

Answered: Given the model for the Mary Island…

Given the model for the Mary Island economy calculate the equilibrium level of income. C = 100 + .7Yd G = 700 T = 500 I = 200

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

ChapterD: The Expenditure-output Model

Section: Chapter Questions

Problem 25CTQ: Exercise D25 What role does government play in stabilizing the economy and what are the tradeoffs...

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Question

Output	Taxes	Disposable Income	Consumption Spending	Saving	Investment	Government	Aggregate Expenditure
5000	1000	4000	4000	-500dis saving	750	750	5500
7000	1000	6000	5500	0	750	750	7000
9000	1000	8000	7000	500	750	750	8500

Given the model for the Mary Island economy calculate the equilibrium level of income.

C = 100 + .7Yd

G = 700

T = 500

I = 200

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