4. C $400+ 0.5 Yd, I=$ 400, G = $ 1200, X = $ 200, M= 0.1 Y, T= 400 a. What is the saving function? Draw the figures of consumption and saving functions. b. What is the net export function? Draw this figure. c. What is the AD function? Draw the figure of AD function. d. What is the equilibrium real GDP (Yeq)? What is the multiplier?

MACROECONOMICS
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ISBN:9781337794985
Author:Baumol
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Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section9.A: The Simple Algebra Of Income Determination And The Multiplier
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4. C $400+ 0.5 Yd, I=$ 400, G = $ 1200, X = $ 200, M= 0.1 Y, T= 400
a. What is the saving function? Draw the figures of consumption and saving functions.
b. What is the net export function? Draw this figure.
c. What is the AD function? Draw the figure of AD function.
d. What is the equilibrium real GDP (Yeq)? What is the multiplier?
Transcribed Image Text:4. C $400+ 0.5 Yd, I=$ 400, G = $ 1200, X = $ 200, M= 0.1 Y, T= 400 a. What is the saving function? Draw the figures of consumption and saving functions. b. What is the net export function? Draw this figure. c. What is the AD function? Draw the figure of AD function. d. What is the equilibrium real GDP (Yeq)? What is the multiplier?
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