1. 

   Jassi singh Member

   C= 0.75Y
   Govt Expenditure=150, Investment=50
   Y is Gdp
   How is y= 800
   Can please anybody explain????

    

   Jassi singh, Apr 18, 2020

   #1
2. 

   Leigh Costanza Member

   AD = C + I + G + X - M
   
   Closed economy, so X = M = 0 , and if in equilibrium we have AD = Y.
   
   So the above equation becomes Y = 0.75Y + 50 + 150, then solve for Y.

    

   Leigh Costanza, Apr 18, 2020

   #2

   Richie Holway likes this.

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in