You need to use the formula from the Keynesian Cross Model Y=C+I+G+NX If C = cY,I...

 

Transcribed Image Text:

You need to use the formula from the Keynesian Cross Model Y=C+I+G+NX •If C = cY,I = I + kY, NX = 0; c = constant; k = constant Y* = Model [Co+lo+G] (1-[c(1-T)+k]) general form using Keynesian Cross A) If Co= 0; c = .6; k = .3; T = 0; 10 = 20 and G = 45 what is the numerical value of Y in equilibrium? B) If everything else stays the same from part A but G takes a new value i. e. G = 90 what is the new Y? You need to use the formula from the Keynesian Cross Model Y=C+I+G+NX •If C = cY,I = I + kY, NX = 0; c = constant; k = constant Y* = Model [Co+lo+G] (1-[c(1-T)+k]) general form using Keynesian Cross A) If Co= 0; c = .6; k = .3; T = 0; 10 = 20 and G = 45 what is the numerical value of Y in equilibrium? B) If everything else stays the same from part A but G takes a new value i. e. G = 90 what is the new Y?

Answer rating: 100% (QA)

To find the numerical value of Y in equilibrium using the Keynesian Cross Model we ca... View the full answer