The economy of country B is characterized by the following: • Aggregate output: Y • Investment spending: I= 80 • Government spending: G= 90 • Net taxation: T= - 10 + 0.1Y • Disposable income: Y=Y -T • Consumption function: C= 30 +0.9Yd The equilibrium output for this economy is 1100 Round off your answer to two decimal places. If the marginal propensity to save (MPS) increases to 0.15, the equilibrium output will be Round off your answer to two decimal places.

The economy of country B is characterized by the following: • Aggregate output: Y • Investment spending: I= 80 • Government spending: G= 90 • Net taxation: T= - 10 + 0.1Y • Disposable income: Y=Y -T • Consumption function: C= 30 +0.9Yd The equilibrium output for this economy is 1100 Round off your answer to two decimal places. If the marginal propensity to save (MPS) increases to 0.15, the equilibrium output will be Round off your answer to two decimal places.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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