Find the equilibrium level of gdp. next find the multiplier, Ask an Expert

Economics

Consider an economy described by the following sets of equations:

C = 120 + 0.80DI

I = 320

G = 480

(X-IM) = -80

T = 200 + 0.25y

Find the equilibrium level of GDP. Next find the multiplier for government purchases and fixed taxes. If full employment comes at y+1800, what are some policies that would move GDP to that level?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M965289

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