Answer to Question #106654 in Macroeconomics for Rahul Nagpal

Question #106654
C = 100 + 0.8Yd investment (I) = 200 govt. exp. (G) = 200 export = 1000 import function(M) = 20+0.2Y (a) Calculate equilibrium income Y (b) Calculate value of multiplier and equilibrium income if import function (M) = 20+0.3Y
1
Expert's answer
2020-03-30T07:20:23-0400

@$a) Y=100+0.8Yd+200+200+1000-(20+0.2Y) @$


@$Y=1480+0.6Y@$

@$Y-0.6Y=1480@$

@$0.4Y=1480@$

@$Y=3700@$

@$b) Y=100+0.8Yd+200+200+1000-(20+0.3Y) @$

@$Y=1480+0.5Y@$

@$0.5Y=1480@$

@$Y=2960@$



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Comments

Assignment Expert
02.04.20, 17:04

Dear visitor,
please use panel for submitting new questions

Kuldeep saini
02.04.20, 09:18

And what is the value of multiplier in this question

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