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An economy is described by the following equations:

C=1,800 + 0.6 (Y-T)
IP=900
G=1,500
NX=100
T=1,500 Y*=9,000

a. Find a numerical equation linking planned aggregate expenditure to output.
b. Find the autonomous expenditure and induced expenditure in this economy.
d. Show algebraically the short-run equilibrium output for this economy.
e. What is the output gap for this economy?
f. Find algebraically the multiplier for this economy?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M947921

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