Consider the following economy:(1) C = 1000 + 0.3 (Y - T)(2) I = 700(3) G = 500(4) T = 400Consumption of equilibrium is:
Question
Solution 1
To find the consumption at equilibrium, we need to use the given equations and solve for the value of Y (income).
The consumption function is given by C = 1000 + 0.3(Y - T), where C represents consumption, Y represents income, and T represents taxes.
From equation (4), we know that T = 400. Subs 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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