ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Given the following consumption function, C = 400 + 0.75YD,
where C= consumption expenditure, YD = disposable income, Investment= $1200, Government spending = $1600,Exports = $500, Imports = $600, Taxes = $1200 and Potential
Choose corrcct option
a) Aactual output is less than potential output
b) actual output is zero
c) actual output is equal to potential output
d) actual output is higher than potential output
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