Question One The data below is for the small economy of Christodea in 2015. Consumption: C = 500 + 0.75Y, Net taxes: 7 = 20+ 0.2Y Planned investment:1= 525 Government expenditure: G = 800 Exports: X = 250 Imports: M = 260 + 0.1Y Calculate the following: a) The economy's planned expenditure function. b) Equilibrium national income. c) Total national savings.
Question One The data below is for the small economy of Christodea in 2015. Consumption: C = 500 + 0.75Y, Net taxes: 7 = 20+ 0.2Y Planned investment:1= 525 Government expenditure: G = 800 Exports: X = 250 Imports: M = 260 + 0.1Y Calculate the following: a) The economy's planned expenditure function. b) Equilibrium national income. c) Total national savings.
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section: Chapter Questions
Problem 1TY
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Transcribed Image Text:Question One
The data below is for the small economy of Christodea in 2015.
Consumption: C = 500 + 0.75Y,
Net taxes: 7 = 20+ 0.2Y
Planned investment:1= 525
Government expenditure: G = 800
Exports: X = 250
Imports: M = 260 + 0.1Y
Calculate the following:
a) The economy's planned expenditure function.
b) Equilibrium national income.
c) Total national savings.
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