(B) Suppose that we have the following model for the goods market:
(8.75)
C= 10 +0.50 (Y-T)
I=20+ 0.19
G = 10
T= 10
Y=C+1G
Find out the equilibrium level of income, Investment, Consumption and Saving.
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Answer:
AS=AD
adding a Little complexity , Y =C+I+G
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