onsider the following numerical example of the simple Keynesian model with no government spending, taxes or a foreign sector (all figures in R millions):
C = 100 + 0,9Y
I = 50
Answer the following questions.
A. Use a graph to illustrate the equilibrium level of output. [5]
1
Expert's answer
2019-08-15T14:18:16-0400
The equilibrium level is where the aggregate expenditure line intersects the 45 degree reference line. This occurs at Y1.
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