Given that: The government expenditure G = 40, the investment I = 60 the consumption C=(0.75)Ya+10, the taxation=(0.2)Y+40 Where Y is the national income, Y is the disposable income. The equilibrium level of consumption (a) 344 (b)222 (c) 322 (d) 100

Given that: The government expenditure G = 40, the investment I = 60 the consumption C=(0.75)Ya+10, the taxation=(0.2)Y+40 Where Y is the national income, Y is the disposable income. The equilibrium level of consumption (a) 344 (b)222 (c) 322 (d) 100

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.A: The Simple Algebra Of Income Determination And The Multiplier

Problem 1TY

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Question

Given that: The government expenditure G = 40, the investment I= 60
the consumption C=(0.75)Y4+10 , the taxation=(0.2)Y+40
Where Y is the national income, Y, is the disposable income.
The equilibrium level of consumption
(a) 344
(b)222
(c) 322
(d) 100

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