economy is characterised by the following: C = 200 + b(Y-50-tY); M= 5+0.5Y; I = 50; G = 50; X=20. The tax rate is at 50% while the marginal propensity to save is given at 30%. Find the equilibrium level of national income. If NI changes to 500, how much will the government increase its expenditure to maintain equilibrium
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THIS DR. KNOWS HOW TO TEACH PAA
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Can you please solve more examples.
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economy is characterised by the following: C = 200 + b(Y-50-tY); M= 5+0.5Y; I = 50; G = 50; X=20. The tax rate is at 50% while the marginal propensity to save is given at 30%. Find the equilibrium level of national income. If NI changes to 500, how much will the government increase its expenditure to maintain equilibrium
Mmm this question bro
Thankyou so much
But finding the new equilibrium the first method is easier to use and gives the same answer
Can't find the question.
Sir pls how did u come about Y-0.75y=0.25
Try to rearrange equations
my question too
1 - 0.75 = 0.25
Sir please how did u get
NEI