Answered: Suppose an economy is characterized by…

Suppose an economy is characterized by the following behavioural equations: C= 160+0.8*YD; I= 150; G= 150; T= 100; Solve for a)Equilibrium GDP (Y) b)Disposable income (YD) c)Consumption (C)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose an economy is characterized by the
following behavioural equations:
C= 160+0.8*YD; I= 150; G= 150; T= 100;
Solve for
a)Equilibrium GDP (Y)
b)Disposable income (YD)
c)Consumption (C)

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