Suppose C= 40 + 0.8Y D. T = 50, I = 60, G = 40, X= 90, M = 50 + 0.05Y

1.	Suppose C= 40 + 0.8Y D. T = 50, I = 60, G = 40, X= 90, M = 50 + 0.05Y (a) Findequilibrium income (b) Findthe net export balance at equilibrium income (c) Whathappens to equilibrium income and the net export balance when thegovernment purchases increase from 40 to 50?
Answer» Suppose C = 40 + 0.8Y D. T = 50, I = 60, G = 40, X = 90, M = 50 + 0.05Y (a) Find equilibrium income (b) Find the net export balance at equilibrium income (c) What happens to equilibrium income and the net export balance when the government purchases increase from 40 to 50?

Suppose C= 40 + 0.8Y D. T = 50, I = 60, G = 40, X= 90, M = 50 + 0.05Y (a) Findequilibrium income (b) Findthe net export balance at equilibrium income (c) Whathappens to equilibrium income and the net export balance when thegovernment purchases increase from 40 to 50?

Answer»

Suppose C
= 40 + 0.8Y D. T = 50, I = 60, G = 40, X
= 90, M = 50 + 0.05Y

(a) Find
equilibrium income

(b) Find
the net export balance at equilibrium income