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5. Suppose that the economy is characterized by the following behavioral equations: C =160 + 0.6Y, 1=150 G=150 T= 100 From these information, we know that the equilibrium output (Y) is_ disposable income (Y,) is_ consumption spending is total demand is - private saving is public saving is fall by. Suppose the government spending decreases by 40, output will

5. Suppose that the economy is characterized by the following behavioral equations: C =160 + 0.6Y, 1=150 G=150 T= 100 From these information, we know that the equilibrium output (Y) is_ disposable income (Y,) is_ consumption spending is total demand is - private saving is public saving is fall by. Suppose the government spending decreases by 40, output will

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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5. Suppose that the economy is characterized by the following behavioral equations: C=160+0.6Y, I =150 G=150 T= 100 From these information, we know that the equilibrium output (Y) is_ disposable income (Y,) is_ , consumption spending is total demand is private saving is , public saving is fall by_ Suppose the government spending decreases by 40, output will 6. Suppose that investment is fixed, as in Chapter 3. The paradox of saving suggests _(increase? that an increase in the desire to save will cause GDP to decrease?)
Transcribed Image Text:5. Suppose that the economy is characterized by the following behavioral equations: C=160+0.6Y, I =150 G=150 T= 100 From these information, we know that the equilibrium output (Y) is_ disposable income (Y,) is_ , consumption spending is total demand is private saving is , public saving is fall by_ Suppose the government spending decreases by 40, output will 6. Suppose that investment is fixed, as in Chapter 3. The paradox of saving suggests _(increase? that an increase in the desire to save will cause GDP to decrease?)
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