A certain economy consumption

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Reference no: EM13889628

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

Reference no: EM13889628

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