Question: Consider a simple closed economy model where Y = C + I + G, consumption is given by the function C = 100 + (2/3)(Y-T),
Consider a simple closed economy model where Y = C + I + G, consumption is given by the function C = 100 + (2/3)(Y-T), investment is I = 50, government purchases are G = 20, and taxes are T = 30. Which of the following is true? Group of answer choices As percentage of equilibrium GDP, the government's budget surplus is 2.8% equilibrium disposable income is 400 autonomous spending is 150 equilibrium income is 470
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
