1.

We suppose that: C = 70 + 0.70YD, I = 90, G = 100, T = 0.10Y (i) Find the equilibrium income. (ii) What are the tax revenues at equilibrium income? Does the government have a balanced budget?

Answer»

We suppose that:

C = 70 + 0.70YD, I = 90, G = 100, T = 0.10Y

(i) Find the equilibrium income.

(ii) What are the tax revenues at equilibrium income? Does the government have a balanced budget?



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