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

Question

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

To find the consumption at equilibrium, we need to use the given equations and information.

The consumption function is given by C = 200 + 0.4(Y - T), where Y represents income and T represents taxes.

From the given information, we know that T = 300.

To find the equilibrium, we need to set the 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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