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The simple (fixed r, fixed P, fixed W) Keynesian model C=300+0.75 YD                  I=310  =300+0.75(Y-T)              G=160                                            T=200 C: consumption function YD: disposable income  I: investment.  G: government spending  T: Taxes.   What is equilibrium income ($output),Ye?  a) 1,227 b) 9,200 c) 2,080 d) 3,680 e) none of the above

The simple (fixed r, fixed P, fixed W) Keynesian model C=300+0.75 YD                  I=310  =300+0.75(Y-T)              G=160                                            T=200 C: consumption function YD: disposable income  I: investment.  G: government spending  T: Taxes.   What is equilibrium income ($output),Ye?  a) 1,227 b) 9,200 c) 2,080 d) 3,680 e) none of the above

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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The simple (fixed r, fixed P, fixed W) Keynesian model

C=300+0.75 YD                  I=310 

=300+0.75(Y-T)              G=160

                                           T=200

C: consumption function YD: disposable income  I: investment.  G: government spending  T: Taxes.  

What is equilibrium income ($output),Ye? 

a) 1,227

b) 9,200

c) 2,080

d) 3,680

e) none of the above

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