Answer to Question #63555 in Macroeconomics for andrew

Question #63555
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
1
Expert's answer
2016-11-24T12:14:10-0500
Solution:
Y = α + β + (Y – T) + G0
Y = C
α + β + (Y – T) + G0 = α + β
Y = C = T – G0

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