Question

Assume a hypothetical economy with the Keynesian cross model with the following equations
C = 1000 + (Y-T)
1 - 500
= 500 T = 1000
a) Craph plamacd expenditure as a function of income.
b) What is the equilibrium level of income?
mmer for government purchases or simply government multiplier!
Linthe new equilibrium income?​

Answer 1

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