Homework answers / question archive / Let the following equations characterize the economy: Z=C+I+G C=C0+C1(Y-T) I=b0+b1Y-b2i i=i* Calculate the equilibrium level of output

Let the following equations characterize the economy: Z=C+I+G C=C0+C1(Y-T) I=b0+b1Y-b2i i=i* Calculate the equilibrium level of output

Economics

Share With

---

Let the following equations characterize the economy:

Z=C+I+G

C=C0+C1(Y-T)

I=b0+b1Y-b2i

i=i*

Calculate the equilibrium level of output. Now, assume that b1+c1=0.5.

Calculate the effect on output of a €100 000 increase in public education expenditures