12. Assume that the consumption function is given by C=200+ 0.7 (Y-7), the tax function is given by T= 100+ 0.2Y, and Y= 50K0.5L0.5, where K = 100. If L increases from 100 to 144, then consumption increases by: a. 560. b. 840. c. 1,120. d. 2,120.

12. Assume that the consumption function is given by C=200+ 0.7 (Y-7), the tax function is given by T= 100+ 0.2Y, and Y= 50K0.5L0.5, where K = 100. If L increases from 100 to 144, then consumption increases by: a. 560. b. 840. c. 1,120. d. 2,120.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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