What is the y in the goods market equilibrium

Reference no: EM13187065

From the Keynesians, Y = C I G NX can be transformed into a theoretical model. In particular, assume that the consumption C = A mpc (Y-T), where A is a constant, mpc is the marginal propensity to consume, Y is national income and T is income taxes. Suppose in the goods market equilibrium, aggregate expenditure = national income such that the two Y's will be the same from Y = A mpc (Y-T) I G NX. Suppose C = 400 0.75(Y - T). G = 100, I = 100, T = 100, and NX = 100, what is the Y in the goods market equilibrium? (All of the variables are in terms of million dollars).

Reference no: EM13187065

Questions Cloud

Find the time that will elapse before the concentration : find the time that will elapse before the concentration of dye in the tank reaches 1% of its original value.

Pros and cons of moving from paper-based medical records : The office manager of the physician's office where you work has assembled a team to assess the pros and cons of moving from paper-based medical records to computer-based medical records.

How mcuh is the balanced-budget multiplier : Suppose the federal government needs to balance the budget, which means that when the government spending increases, taxes must increase equally. In this case, government spending multiplier is called the balanced-budget multiplier, defined as the..

Anthropology and understanding of human cultures : How do you think anthropology and an understanding of human cultures can help you in the world in which you live?

What is the y in the goods market equilibrium : From the Keynesians, Y = C I G NX can be transformed into a theoretical model. In particular, assume that the consumption C = A mpc (Y-T), where A is a constant, mpc is the marginal propensity to consume, Y is national income and T is income taxes..

What is the western notion of progress : What is the Western notion of "progress", from an anthropological viewpoint, is this notion correct?

How many degrees of rotation did the pendulum swing : A 30cm pendulum traverses an arc of 15 cm. To the nearest degree, how many degrees of rotation did the pendulum swing?

State what antibiotic put in an agar plate : what antibiotic woiuld you put in an agar plate to ensure that the cells of a bacterial colony contain the plasmid withou an insert? c) which phenotype will indicate the presence of plasmids that contain human DNA fragments?

How to determine the unexpected increase in ad : Suppose the wage rates of workers are based on the expected price level. If there is an unexpected increase in AD, it will cause the actual price level to increase. Then workers should raise their expected price level and negotiate a higher wage r..

User Account

All Pages