420Worksheet14

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

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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....
View Full Document

This document was uploaded on 10/28/2011 for the course ECON 420 at UNC.

Ask a homework question - tutors are online