OutputTaxesDisposable IncomeConsumption SpendingSavingInvestmentGovernmentAggregateExpenditure5000100040004000-500dis saving750750550070001000600055000750750700090001000800070005007507508500 Given the model for the Mary Island economy calculate the equilibrium level of income. C = 100 + .7YdG = 700T = 500I = 200

Answered: Given the model for the Mary Island…

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 1.1P

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Output	Taxes	Disposable Income	Consumption Spending	Saving	Investment	Government	Aggregate Expenditure
5000	1000	4000	4000	-500dis saving	750	750	5500
7000	1000	6000	5500	0	750	750	7000
9000	1000	8000	7000	500	750	750	8500

Given the model for the Mary Island economy calculate the equilibrium level of income.

C = 100 + .7Yd

G = 700

T = 500

I = 200

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