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Answer to Question #63342 in Macroeconomics for dennis
Question #63342
Given a hypothetical consumption function of the form:
Y = C + I0 + G0
C = α + β
Where: = Y – T
Y = Income
T = Taxes and that:
Compute the equilibrium level of income and consumption
Y = C + I0 + G0
C = α + β
Where: = Y – T
Y = Income
T = Taxes and that:
Compute the equilibrium level of income and consumption
Expert's answer
The equilibrium level of income and consumption is described with the formula: C + I0 + G0=α + β
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