3 Consider the following Keynesian model C 100 0 8 (Y T) Planned Investment (I) 100 Government Purchase (G) 50 Taxes (T) 50 a Graph planned expenditure (PE) as a function of income (Y) b What is equilibrium level of income (Y) c If government purchase (G) is increases to 50, what is new equilibriu...

To answer these questions we need to consider the Keynesian model equation and the given values Plan ...

3. Consider the following Keynesian model: C=100+ 0.8 (Y-T) Planned Investment (I) = 100 Government Purchase...

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3. Consider the following Keynesian model: C=100+ 0.8 (Y-T) Planned Investment (I) = 100 Government Purchase...

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