Consider the following economyC=1000+0.4(Y-T)I=500T=400G=300What is the consumption of equilibrium?

Question

Consider the following economyC=1000+0.4(Y-T)I=500T=400G=300What is the consumption of equilibrium?
🧐 Not the exact question you are looking for?Go ask a question

Solution 1

To find the consumption at equilibrium, we need to first determine the level of income (Y) at which aggregate demand equals aggregate supply. In this case, aggregate demand is represented by C + I + G, and aggregate supply is represented by Y.

Given the following equations: C = 1000 + 0.4(Y - T) I Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

This problem has been solved

Similar Questions

Consider the following economyC=1000+0.4(Y-T)I=500T=400G=300What is the consumption of equilibrium?

Consider the following economyC=1000+0.4(Y-T)I=500T=400G=300What is the investment of equilibrium?

Consider the following economyC=1000+0.4(Y-T)I=500T=400G=300What is the income of equilibrium?

Consider the following economyC=1000+0.4(Y-T)I=500T=400G=300Autonomous spending is:

Consider a closed economy:(1) C = 200 + 0.4 (Y-T)(2) I =300(3) G = 400(4) T = 300What is consumption of equilibrium?

1/3