Given the following equations for a hypothetical closed economy: C = 200+ 0.8Yd Yd=Y-T, I = 200, G = 80, T= 100. 1. What is the Saving function? 2. Determine the equilibrium output, chick your answer using injection leakages model. 3. how much the government expenditure should increase, in order to increase the output by 200?
Given the following equations for a hypothetical closed economy: C = 200+ 0.8Yd Yd=Y-T, I = 200, G = 80, T= 100. 1. What is the Saving function? 2. Determine the equilibrium output, chick your answer using injection leakages model. 3. how much the government expenditure should increase, in order to increase the output by 200?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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