Consider a Keynesian model of the economy with the following equations; C = 300 + 0.7Yd = 500 TR 250 T. %3D = 300 - = 400 = 150 M= 0.2Y The equilibrium level of income is €1,500 €2,720 €2,650 €1,325
Consider a Keynesian model of the economy with the following equations; C = 300 + 0.7Yd = 500 TR 250 T. %3D = 300 - = 400 = 150 M= 0.2Y The equilibrium level of income is €1,500 €2,720 €2,650 €1,325
Chapter8: Aggregate Demand And The Powerful Consumer
Section: Chapter Questions
Problem 3DQ
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Transcribed Image Text:Consider a Keynesian model of the economy with the following equations;
C = 300 + 0.7Yd
= 500
TR
ァミ250
= 300
= 400
X 150
M = 0,2Y
The equilibrium level of income is
O €1,500
€2,720
€2,650
O €1,325
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