Consider the following economyC=1000+0.4(Y-T)I=500T=400G=300What is the income of equilibrium?
Question
Solution 1
To find the income of equilibrium, we need to use the aggregate demand and aggregate supply model. In this model, equilibrium occurs when aggregate demand (AD) equals aggregate supply (AS).
The aggregate demand (AD) is given by the equation: AD = C + I + G
Substituting the given values, we have: A 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
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