In a simple closed economy, consumption is given by the relationship C=0.75Y, where C is consumption expenditure and Y is GDP. If government expenditure is £150 million and investment is £50 million, what will be the value of GDP of the economy? a) £200 million b) £750 million c) £315 million d) £800 million
In a simple closed economy, consumption is given by the relationship C=0.75Y, where C is consumption expenditure and Y is GDP. If government expenditure is £150 million and investment is £50 million, what will be the value of GDP of the economy? a) £200 million b) £750 million c) £315 million d) £800 million
Chapter18: The Keynesian Model
Section: Chapter Questions
Problem 6SQ
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In a simple closed economy, consumption is given by the relationship C=0.75Y, where C is consumption expenditure and Y is
a) £200 million
b) £750 million
c) £315 million
d) £800 million
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