Problem 1Suppose the system of aggregate expenditures can be described by the following relationships andparameter values.C(Y – T) = 1200 + 0.8 (Y – T)I(r)= 100 – 3rG = 200 ;T =200; r = 5; Ex = Im = 0%3D1. Find the equilibrium value ofY (output/income) in this model. Let this level of productionbe the economy's potential GDP (Y;).

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Problem 1 Suppose the system of aggregate expenditures can be described by the following relationships and parameter values. C(Y — Т) 3D 1200+ 0.8(Y — T) I(r) = 100 – 3r G = 200;T = 200; r = 5; Ex = Im = 0 1. Find the equilibrium value of Y (output/income) in this model. Let this level of production be the economy's potential GDP (Yr).

Problem 1 Suppose the system of aggregate expenditures can be described by the following relationships and parameter values. C(Y — Т) 3D 1200+ 0.8(Y — T) I(r) = 100 – 3r G = 200;T = 200; r = 5; Ex = Im = 0 1. Find the equilibrium value of Y (output/income) in this model. Let this level of production be the economy's potential GDP (Yr).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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