Answer the following questions based on the below graph AE 5000 2000 45 5000 TP Investment I: $400 Government G: $300 AE Taxes T: Net Export NX: $0 $100 a- Graphically determine the equilibrium level of output. b- Derive the consumption and saving functions. c- Mathematically solve for the equilibrium level of income. d- When the economy is at full employment the output level is $5500. How much would government purchases change to create full employment?
Answer the following questions based on the below graph AE 5000 2000 45 5000 TP Investment I: $400 Government G: $300 AE Taxes T: Net Export NX: $0 $100 a- Graphically determine the equilibrium level of output. b- Derive the consumption and saving functions. c- Mathematically solve for the equilibrium level of income. d- When the economy is at full employment the output level is $5500. How much would government purchases change to create full employment?
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:Answer the following questions based on the below graph
AE
5000
2000
45
5000
TP
Investment I:
$400
Government G:
$300
AE
Taxes T:
Net Export NX:
$0
$100
a- Graphically determine the equilibrium level of output.
b- Derive the consumption and saving functions.
c- Mathematically solve for the equilibrium level of income.
d- When the economy is at full employment the output level is $5500. How much would
government purchases change to create full employment?
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