Answer to Question #110574 in Macroeconomics for Dineo

Question #110574

Consider the following model of the economy: C=C0 +c1Yd
T=t0 +t1Y
Yd = Y - T
G and I are both constant (exogenous).

Expert's answer

Y=C+I+G+Xn

Y=C₀+MPC(Y-T₀)+I+G+Xn

Y=C-c₁(Y-t₀-tY)+MPC(Y-t₀-t₁Y)+I+G+Xn

Learn more about our help with Assignments: Macroeconomics

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. Equilibrium level of income is that at which
2. True or false questions: 1. The horizontal intercept of the Okun’s Law curve for an economy is
3. according to the keynesian model,the factors that influence a household's induced consumption a
4. Greater integration of domestic industries with global production network (GPN) must form an essenti
5. What is the 'divine coincidence' and why is it difficult to implement?
6. 1) How does the 'efficiency wage' prevent the economy from achieving full-employment? 2
7. In a large economy such as ours, it is impossible to simply count how many times each dollar changes