Assume in a closed economy: C = 40 + 0.8(Y - T) G = 10 I =
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Question:
Assume in a closed economy: C = 40 + 0.8(Y - T) G = 10 I = 20 T = 0, where T are taxes. (a) Calculate Y at equilibrium.
(b) Calculate C, I, and G at equilibrium.
(c) Now assume the economy is open with exports and imports activities,
EX = 5 + 4EP /P
IM = 10 + 0.1 (Y - T) - 3EP /P
E = 3
P* = 1.5
P = 2
Find equilibrium Y.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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