420Worksheet14 - b. What is the equilibrium level of...

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ECON 420 Worksheet 14 1. In the Keynesian cross, assume that the consumption function is given by C = 100 + 0.80*(Y-T) Planned investment is 200; government purchases and taxes are both 100. a. Graph planned expenditure as a function of income.
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Unformatted text preview: b. What is the equilibrium level of income? c. If government purchases increase to 150 what is the new equilibrium income? Show this shift in the above graph....
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This document was uploaded on 10/28/2011 for the course ECON 420 at UNC.

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