Question: he basic form of such a model is: Y = C + I + G + NE. Now, let's say we have the following parameters
he basic form of such a model is: Y = C + I + G + NE. Now, let's say we have the following parameters (note: this is a model that takes into account taxes).
a = 100
MPC = 0.8
T = 300
I = 200
NE = 140
In addition, suppose that we are in a recession and we want to get out of it. We want to set government spending such that we reach Y = 3000.Calculate the Gthat will give us this Y.
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