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?
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?
Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section9.A: The Simple Algebra Of Income Determination And The Multiplier
Problem 4TY
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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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