Asked by Jonathan
Suppose that the consumption function is C=100+.8(y-t). Initially investment and government expendtures are I=75 and G=150 and taxes are T=50.
1.Depict this economy using the keynesian cross.
calulate the initial equilibrium income.
how much will income increas if government expendtures increase to g=200.
1.Depict this economy using the keynesian cross.
calulate the initial equilibrium income.
how much will income increas if government expendtures increase to g=200.
Answers
Answered by
mirtha
150
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