Answered: For the following economy, find the…

For the following economy, find the equilibrium level of income. C = 10 + 0.75Y I = 50 – 5r r = 25 - MS G = 20 MS = 20 (assume price level, P = .5)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

For the following economy, find the equilibrium level of income.

C = 10 + 0.75Y

I = 50 – 5r

r = 25 - MS

G = 20

MS = 20

(assume price level, P = .5)

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