The following equations refer to the goods market of an economy in billions of euros: [ begin{aligned}

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The following equations refer to the goods market of an economy in billions of euros:

\[
\begin{aligned}
C & =480+0.5 Y_{D} \\
I & =110 \\
T & =70 \\
G & =250
\end{aligned}
\]

a. Solve for the goods market equilibrium.

b. Find equilibrium disposable income \(\left(Y_{D}\right)\).

c. Find equilibrium consumption (C).

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Macroeconomics

ISBN: 9781292160504

7th Global Edition

Authors: Olivier J. Blanchard

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