Answered: consumption=100+0.8Yd investment=…

consumption=100+0.8Yd investment= 150-16i government expenditure= 100 taxes=0.25Y DD for money=0.2Y-2i money supply=300 price level=2 determine equilibrium level of income and rate of interest

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section: Chapter Questions

Problem 2DQ

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Question

consumption=100+0.8Yd

investment= 150-16i

government expenditure= 100

taxes=0.25Y

DD for money=0.2Y-2i

money supply=300

price level=2

determine equilibrium level of income and rate of interest

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