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Macroeconomics 13th Edition by William Baumol ,Alan Blinder
Edition 13ISBN: 978-1305280601Macroeconomics 13th Edition by William Baumol ,Alan Blinder
Edition 13ISBN: 978-1305280601 Exercise 5
(More difficult) An economy has the following consumption function:
C = 200 + 0.8 DI
The government budget is balanced, with government purchases and taxes both fixed at $1,000. Net exports are $100. Investment is $600. Find equilibrium GDP. What is the multiplier for this economy If G rises by $100, what happens to Y What happens to Y if both G and T rise by $100 at the same time
C = 200 + 0.8 DI
The government budget is balanced, with government purchases and taxes both fixed at $1,000. Net exports are $100. Investment is $600. Find equilibrium GDP. What is the multiplier for this economy If G rises by $100, what happens to Y What happens to Y if both G and T rise by $100 at the same time
Explanation
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If the government expenditure is increas...
Macroeconomics 13th Edition by William Baumol ,Alan Blinder
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