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Microeconomic Theory

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.4P

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1.2. Graph (with correct labels) equilibrium Y and AE.

Part 1: Aggregate expenditure and Equilibrium output. Assume the following
Consumption function (C) = 500 +(0.65) YD
Investment (I) = 400
Таx
1000
Government expenditure (G) = 300
Export (Ex) = 400
Import ( Im) = 0.05 YD
Where YDis Disposal Income

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