Assume:

 Consumption expenditure: C= 200 + 0.8(Y-T)

 Lump-sum constant taxes:  T= 300

Investment expenditure:   I = 1054

Government expenditure: G = 300

 

1) What is the equilibrium Y?

2) What is the equilibrium consumption expenditure?

3)What is the value of the goods market multiplier?

Answer rating: 100% (QA)

1 The equilibrium Y can be found by setting the total expenditure equal to the to... View the full answer