Consider an economy having following values of Consumption, Investment, Government Spending, and Taxes, C = 300 + 0.7Yd I = 200 – 200i G = 600 T = 100 Derive the aggregate demand equation. Also, calculate the output in an economy.

Consider an economy having following values of Consumption, Investment, Government Spending, and Taxes, C = 300 + 0.7Yd I = 200 – 200i G = 600 T = 100 Derive the aggregate demand equation. Also, calculate the output in an economy.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider an economy having following values of Consumption, Investment, Government

Spending, and Taxes,

C = 300 + 0.7Y_d I = 200 – 200i G = 600 T = 100

Derive the aggregate demand equation. Also, calculate the output in an economy.

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