In the Keynesian cross model, assume that the consumption function is given by C=$85+0.7(Y-T)C=$85+0.7(Y-T) Planned investment is $200; government purchases and taxes are both $50. e. What level of taxes is needed to achieve an income of $1160? Assume government purchases remain at $50. T=$?
In the Keynesian cross model, assume that the consumption function is given by C=$85+0.7(Y-T)C=$85+0.7(Y-T) Planned investment is $200; government purchases and taxes are both $50. e. What level of taxes is needed to achieve an income of $1160? Assume government purchases remain at $50. T=$?
Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section: Chapter Questions
Problem 7TY
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![In the Keynesian
the consumption
cross model, assume that
function is given by
C=$85+0.7(Y-T)C=$85+0.7(Y-T)
Planned investment is $200; government
purchases and taxes are both $50.
e. What level of taxes is needed to achieve
an income of $1160? Assume government
purchases remain at $50.
T=$?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F844ecdb9-4390-43d5-952a-ea5ac56aa751%2Fa44a1dbb-0428-45fc-9c36-412060b5fa17%2F85hnnyp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In the Keynesian
the consumption
cross model, assume that
function is given by
C=$85+0.7(Y-T)C=$85+0.7(Y-T)
Planned investment is $200; government
purchases and taxes are both $50.
e. What level of taxes is needed to achieve
an income of $1160? Assume government
purchases remain at $50.
T=$?
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