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

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter20: Exchange Rates And The Macroeconomy

Section: Chapter Questions

Problem 3TY

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