1. Y = C + 1 + G + (X – Z) C = Co + bY I = 1, + aY G = Go Z = Z. X = Xo In the national income model above, Y represents income, C is the consumption, G is the government expenditure, X is export, Z is import, Co is the autonomous consumption, b is the marginal propensity to consumption, a is the marginal propensity to invest. Find (i) Equilibrium income and consumption (ii) the government expenditure multiplier (iii) import multiplier and

1. Y = C + 1 + G + (X – Z) C = Co + bY I = 1, + aY G = Go Z = Z. X = Xo In the national income model above, Y represents income, C is the consumption, G is the government expenditure, X is export, Z is import, Co is the autonomous consumption, b is the marginal propensity to consumption, a is the marginal propensity to invest. Find (i) Equilibrium income and consumption (ii) the government expenditure multiplier (iii) import multiplier and

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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