Answer to Question #60251 in Economics of Enterprise for Andrew Jackson
a. 500 b. 80 c. 100 d. 200
If G was to rise from 100 to 200, then the change of equilibrium value of Y will be:
Y1 = 10 + 0.8*C + 100 = 0.8C + 110,
Y2 = 10 + 0.8*C + 200 = 0.8C + 210,
Y2 - Y1 = 100, so the correct answer is c.
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