What is the value of government expenditure multiplier, Microeconomics

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What is the value of government expenditure multiplier

Suppose that for a particular economy and period,investment was equal to 100,government expenditure was equal to 75, net taxes was fixed at 100,and consumption was given by consumption function c=25+0.8Yd where Yd is the disposable income and Y is GDP?

a. what is the level of equilibrium income Y?
b.what is the value of government expenditure multiplier

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Microeconomics: What is the value of government expenditure multiplier

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Microeconomics: What is the value of government expenditure multiplier

Reference No:- TGS038180

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Recent Questions Asked Microeconomics

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Ask an Expert for Answer!!

Microeconomics: What is the value of government expenditure multiplier

Reference No:- TGS038180

Recent Questions Asked Microeconomics

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