The economy of a country is characterized by the following equations: Aggregate consumption function C=100+0.50 (Yd), where Yd is the disposable income. Total taxes T=100, aggregate investment I= 100 and government expenditures G=100. What is the level of aggregate consumption at the equilibrium? O 450 300

The economy of a country is characterized by the following equations: Aggregate consumption function C=100+0.50 (Yd), where Yd is the disposable income. Total taxes T=100, aggregate investment I= 100 and government expenditures G=100. What is the level of aggregate consumption at the equilibrium? O 450 300

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.A: The Simple Algebra Of Income Determination And The Multiplier

Problem 4TY

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