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Suppose the economy has the following relationships in the

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1. Suppose the Economy has the following relationships in the Goods Market?

C = 160 + 0.7*( Y – T ) + I + G

I = 150

G = 150

T = t1* Y, where t1 = 0.1

a.) Explain the tax system in this country?

b.) Solve for Equilibrium GDP (Y). Assume NX = 0

c.) What are C and Yd, and T?

Reference no: EM13335501

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