Question

C = 250 + 0.75Yd I = 180 G = 200 T = 80 a. Find...

C = 250 + 0.75Yd
I = 180
G = 200
T = 80

a. Find new consumption function and saving function.

b. Calculate government expenditure multiplier.

c. Calculate National Income equilibrium using approach:

i. AD = AS
ii. Leakage = Injection

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