In the national income model above, Y represents income, C is the consumption, G is the government expenditure, X is export, Z is import, Co is the autonomous consumption, b is the marginal propensity to consumption, a is the marginal propensity to invest. Find (i) Equilibrium income and consumption (ii) the government expenditure multiplier (ii) import multiplier and
In the national income model above, Y represents income, C is the consumption, G is the government expenditure, X is export, Z is import, Co is the autonomous consumption, b is the marginal propensity to consumption, a is the marginal propensity to invest. Find (i) Equilibrium income and consumption (ii) the government expenditure multiplier (ii) import multiplier and
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Plsease solve 1(iii)
![1.
Y = C + I + G + (X – Z)
C = Co + bY
I = lo + aY
G = Go
Z = Z,
X = Xo
In the national income model above, Y represents income, C is the consumption, G is the government
expenditure, X is export, Z is import, Co is the autonomous consumption, b is the marginal propensity to
consumption, a is the marginal propensity to invest. Find
(i)
Equilibrium income and consumption
(ii)
the government expenditure multiplier
(ii)
import multiplier and
A
Go](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fec9abba7-f67e-4cac-9321-68243683ce1c%2F266a0157-0190-4341-bb95-1a9d0974b434%2Fup38yul_processed.png&w=3840&q=75)
Transcribed Image Text:1.
Y = C + I + G + (X – Z)
C = Co + bY
I = lo + aY
G = Go
Z = Z,
X = Xo
In the national income model above, Y represents income, C is the consumption, G is the government
expenditure, X is export, Z is import, Co is the autonomous consumption, b is the marginal propensity to
consumption, a is the marginal propensity to invest. Find
(i)
Equilibrium income and consumption
(ii)
the government expenditure multiplier
(ii)
import multiplier and
A
Go
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