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

Expert's answer

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

@$Y=1480+0.6Y@$

@$Y-0.6Y=1480@$

@$0.4Y=1480@$

@$Y=3700@$

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

@$Y=1480+0.5Y@$

@$0.5Y=1480@$

@$Y=2960@$

## Comments

Assignment Expert02.04.20, 17:04Dear visitor,

please use panel for submitting new questions

Kuldeep saini02.04.20, 09:18And what is the value of multiplier in this question

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