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Assume that C = XXXXXXXXXXY - T), Id = 4, G = 0 and T = 1. Say that the full employment level of income is $111, by how much should G change to reach full employment? Show your calculation Redo this...

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Assume that C = XXXXXXXXXXY - T), Id = 4, G = 0 and T = 1. Say that the full employment level of income is $111, by how much should G change to reach full employment? Show your calculation

Redo this question with T.

Answered Same Day Dec 22, 2021

Solution

David answered on Dec 22 2021
123 Votes
Assume that C = 5 + 0.9 (Y - T), Id = 4, G = 0 and T = 1. Say that the full
employment level of income is $111, by how much should G change to reach full
employment? Show your calculation
Redo this question with T.
We calculate the equili
ium level of Y to be 81. If the full employment...
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