Consider a hypothetical economy described by the following information: C = 500 I = 100 G = 200 T = 80 mpc = 0.6 %3D %3D Task 1. Answer the following given the information above. D. Compute for the change in equilibrium income if the government decreased its expenditure to 100. E. Derive the savings function of this economy. F. Compute for the value of savings suppose the economy is in equilibrium.

MACROECONOMICS
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Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section9.A: The Simple Algebra Of Income Determination And The Multiplier
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PLEASE ANSWER D, E, AND F. 

Consider a hypothetical economy described by the following information:
C = 500
Ī = 100
G = 200
T = 80
трс
= 0.6
Task 1. Answer the following given the information above.
D. Compute for the change in equilibrium income if the government decreased its expenditure
to 100.
E. Derive the savings function of this economy.
F. Compute for the value of savings suppose the economy is in equilibrium.
Transcribed Image Text:Consider a hypothetical economy described by the following information: C = 500 Ī = 100 G = 200 T = 80 трс = 0.6 Task 1. Answer the following given the information above. D. Compute for the change in equilibrium income if the government decreased its expenditure to 100. E. Derive the savings function of this economy. F. Compute for the value of savings suppose the economy is in equilibrium.
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