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Business, 28.05.2020 02:08 querty2400

Imagine the economy is defined by the consumption function of C = 200 + 0.9 (Yd) where 200 is autonomous consumption, 0.9 is marginal propensity to consume, and Yd is disposable income (after taxes) and Yd=Y-T, where Y is national income (or GDP) and T=Tax Revenues=0.3Y (0.3 is the avg. income tax rate). Find the macro equilibrium using the following equation Y = C + I + G + (X - M) where C=200 + 0.9(Yd), I=600, G=1000, X=600, M=0.1Y. What is the equilibrium for this economy? [Remember Y=AE]

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