I a certain economy consumption c is given as c 10000


In a certain economy consumption (C) is given as; C = 10,000 + 0.7Y

I = 10,000 where G = Government spending

G = 5,000 X = Exports

X = 6,000 T = Tax

T = 4,000 M= Imports

M = 8,000 I = Investment

Required;

  • Find the equilibrium income using E = Y
  • Find the equilibrium using injections (J) = withdrawals (W)
  • By how much would income (Y) change if investment is increased by 2,000

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Macroeconomics: I a certain economy consumption c is given as c 10000
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