Questions
Numerical
An open economy, with government, is characterized by the following equations - C = 100 + 0.7Yd ; where C is consumption and Yd is disposable income I = 150 ; where I is investments G = 60 ; where G is government expenditures T = 50 ; where T is taxes X = 60 ; where X is exports M = 0.1Y ; where M is imports and Y is income Find the equilibrium output (Y) in the economy.
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The task is to find the equilibrium output using the given macro identities for an open economy with a government.
First, compute disposable income: Yd = Y − ......Login to view full explanationLog in for full answers
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