Use the following equations for exercises 16–18. C = $100 + .8Y I - $200 G = $250 x = $100 – .2Y 16. What is the equilibrium level of real GDP? 17. What is the new equilibrium level of real GDP if government spending increases by $150? 18. What is the new equilibrium level of real GDP if government spending and taxes both increase by $150?
Use the following equations for exercises 16–18. C = $100 + .8Y I - $200 G = $250 x = $100 – .2Y 16. What is the equilibrium level of real GDP? 17. What is the new equilibrium level of real GDP if government spending increases by $150? 18. What is the new equilibrium level of real GDP if government spending and taxes both increase by $150?
Chapter10: Income And Expenditures Equilibrium
Section: Chapter Questions
Problem 14E
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Question 17 and 18 how to solve it step by step. Thanks
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