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