An economy is defined by the following equations: C=500+0.8(Y-T) 1=300+0.3Y X=0.3Y* IM=0.3Y T=1000, G=2000, Y*=5000 The equation of the demand for domestic goods (Z) is: (A) Z=3500+0.5Y (B) Z-4000+0.8Y Z=3500+0.8Y D) none is correct

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter14: Limiting Market Power: Antitrust And Regulation
Section: Chapter Questions
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Question 22
An economy is defined by the following equations:
C=500+0.8(Y-T)
1=300+0.3Y
X=0.3Y*
IM=0.3Y
T=1000, G=2000, Y*=5000
The equation of the demand for domestic goods (Z) is:
A Z=3500+0.5Y
(B) Z-4000+0.8Y
C) Z=3500+0.8Y
D) none is correct
Transcribed Image Text:Question 22 An economy is defined by the following equations: C=500+0.8(Y-T) 1=300+0.3Y X=0.3Y* IM=0.3Y T=1000, G=2000, Y*=5000 The equation of the demand for domestic goods (Z) is: A Z=3500+0.5Y (B) Z-4000+0.8Y C) Z=3500+0.8Y D) none is correct
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