Suppose C = 100 + 0.75YD, I = 500, G = 750, taxes are 20% of income,

1.	Suppose C = 100 + 0.75YD, I = 500, G = 750, taxes are 20% of income, X = 150, M = 100 + 0.2Y. Calculate equilibrium income, the budget deficit or surplus and the trade deficit or surplus.
Answer» Suppose C = 100 + 0.75YD, I = 500, G = 750, taxes are 20% of income, X = 150, M = 100 + 0.2Y. Calculate equilibrium income, the budget deficit or surplus and the trade deficit or surplus.

Suppose C = 100 + 0.75YD, I = 500, G = 750, taxes are 20% of income, X = 150, M = 100 + 0.2Y. Calculate equilibrium income, the budget deficit or surplus and the trade deficit or surplus.

Answer»

Suppose C = 100 + 0.75YD, I = 500, G = 750, taxes are 20% of income, X = 150, M = 100 + 0.2Y.

Calculate equilibrium income, the budget deficit or surplus and the trade deficit or surplus.