Question 3. Using the Keynesian-cross analysis, assume that the consumption function is given by C = 200 + 0.7 (Y – T). If the planned investment is 50 and T is 100, then what is the level of G needed to make equilibrium Y equal 1,000?

Question 3. Using the Keynesian-cross analysis, assume that the consumption function is given by C = 200 + 0.7 (Y – T). If the planned investment is 50 and T is 100, then what is the level of G needed to make equilibrium Y equal 1,000?

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Kenesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy

Section: Chapter Questions

Problem 8QP

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