question archive Suppose that the economy is characterized by the following behavioral? equations: C? = 120 +0
Suppose that the economy is characterized by the following behavioral? equations: C? = 120 +0
Subject:EconomicsPrice:2.84 Bought6
Suppose that the economy is characterized by the following behavioral? equations:
C? = 120 +0.60YD
I ?= 130
G? = 150
T? = 100
a)Equilibrium GDP ?(Y?) ?= ?(Round your response to two decimal places?.)
b) Disposable income ?(YD?) ?= ?(Round your response to two decimal places.?)
c) Consumption spending ?(C?) ?= ?(Round your response to two decimal
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Ans a. Y = 850.00
Ans b. Yd = 750.00
Ans c. C = 570.00
Step-by-step explanation
Ans a. Y = C + I + G
Y = 120 +0.60YD + 130 + 150
Since YD = Y - T
Y = 120 + 0.6(Y - 100) + 130 + 150
Y = 340 + 0.6Y
0.4Y = 340
Y = 850.00
Ans b.
Yd = Y - T
Yd = 850 - 100
Yd = 750.00
Ans c.
C = 120 +0.60YD
C = 120 + 0.60*750
C = 570.00
