2. Suppose that the economy is characterized by the following behavioral equations: Solve for the following variables. a. Equilibrium GDP (Y) b. Disposable income (YD) c. Consumption spending (C) C=160+0.6YD 1 = 150 G = 150 T= 100
2. Suppose that the economy is characterized by the following behavioral equations: Solve for the following variables. a. Equilibrium GDP (Y) b. Disposable income (YD) c. Consumption spending (C) C=160+0.6YD 1 = 150 G = 150 T= 100
Chapter9: Aggregate Expenditures
Section: Chapter Questions
Problem 7E
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Transcribed Image Text:2. Suppose that the economy is characterized by the following behavioral equations:
Solve for the following variables.
a. Equilibrium GDP (Y)
b. Disposable income (YD)
c. Consumption spending (C)
C=160+0.6YD
1 = 150
G = 150
T= 100
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