Derive from first principles equilibrium level of income

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Reference no: EM1350450

A Keynesian model of the closed economy is described by the following equations

Y = C + I + G
where
C = bYd
Yd = Y + TR - T
TR =
T =
I =
G =

(a) Derive, from first principles, the equilibrium level of income.

(b) Derive the Keynesian expenditure multiplier.

Reference no: EM1350450

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