You are given the following model that describes the economy of Hypothetica. Consumption function: C = 100 + 0.8Yd Planned investment: 1 = $30 Government spending: G = $75 Exports: EX = $25 Imports: IM = 0.05Yd Disposable income: Y=Y-T Taxes: T = $40 Planned aggregate expenditure: AE =C+I+G+ EX-IM Definition of equilibrium income: Y = AE Equilibrium income in Hypothetica is $ (Enter your response as a whole number.)

You are given the following model that describes the economy of Hypothetica. Consumption function: C = 100 + 0.8Yd Planned investment: 1 = $30 Government spending: G = $75 Exports: EX = $25 Imports: IM = 0.05Yd Disposable income: Y=Y-T Taxes: T = $40 Planned aggregate expenditure: AE =C+I+G+ EX-IM Definition of equilibrium income: Y = AE Equilibrium income in Hypothetica is $ (Enter your response as a whole number.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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