Following data is given for two country Keynesian model with no government (G=T=0) C= 100+0.9Y I= 200 C* =200+0.8Y* * =400 M=0.1Y M*=0.2Y* NOTE: use a 2-digit accuracy in your calculations, i.e. 1.467238=1.47 or 1.43488=1.43 a. The equilibrium income for the domestic economy is; Y= b. The equilibrium income for the foreign economy is: Y*= c. Assume that the domestic exports increases by 150 units. As a result of this the change in the domestic income is; AY=

Following data is given for two country Keynesian model with no government (G=T=0) C= 100+0.9Y I= 200 C* =200+0.8Y* * =400 M=0.1Y M=0.2Y NOTE: use a 2-digit accuracy in your calculations, i.e. 1.467238=1.47 or 1.43488=1.43 a. The equilibrium income for the domestic economy is; Y= b. The equilibrium income for the foreign economy is: Y*= c. Assume that the domestic exports increases by 150 units. As a result of this the change in the domestic income is; AY=

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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