Assume that the economy can be modeled as follows: AE = C + I + G C = 300 + .6Yd I = 400 G = 100 T = 200 y= 1700 consumption = 1200 4) What is the level of private saving in equilibrium? 5) What is the level of public saving in equilibrium? 6) What is the level of aggregate saving in equilibrium?
Assume that the economy can be modeled as follows: AE = C + I + G C = 300 + .6Yd I = 400 G = 100 T = 200 y= 1700 consumption = 1200 4) What is the level of private saving in equilibrium? 5) What is the level of public saving in equilibrium? 6) What is the level of aggregate saving in equilibrium?
Chapter18: The Keynesian Model
Section: Chapter Questions
Problem 6SQP
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Assume that the economy can be modeled as follows:
AE = C + I + G
C = 300 + .6Yd
I = 400
G = 100
T = 200
y= 1700
consumption = 1200
4) What is the level of private saving in equilibrium?
5) What is the level of
6) What is the level of aggregate saving in equilibrium?
7) Imagine the government would like to increase equilibrium
8) What is the size of the spending multiplier?
9) What is the size of the tax multiplier?
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