question archive Consider the following model of a closed economy in which household income taxes are proportional to income: Ya = C+1+G Y = ya
Consider the following model of a closed economy in which household income taxes are proportional to income: Ya = C+1+G Y = ya
Subject:EconomicsPrice: Bought3
Consider the following model of a closed economy in which household income taxes are proportional to income: Ya = C+1+G Y = ya . C = 400 + 0.60(Y -T) . 1 = 1200 G = 1000 T = 0.20Y a. What is "autonomous expenditure" for this economy? Hint: by definition, it will not depend on the value of real aggregate income (Y).
