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Unformatted text preview: x = 21 2 x & (5 + x ) = 16 & (3 x + 9) & 5(3 x & 2) = 16(1 & x ) 1 x = 3 4 1 x & 1 = 3 4 1 x & 1 = 1 3 x + 2 x x + 1 = 2 x & 3 x + 3 = x & 4 x + 4 Question 4. A standard Keynesian model implies Y = C + I C = A + 0 : 8 Y where A; I are positive numbers describing autonomous consumption and gross investment respectively. These equations imply Y must satisfy Y = A + 0 : 8 Y + I: Solve for Y: Why does a £ 1 increase in I imply GDP increases by £ 5? 1...
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This note was uploaded on 12/31/2011 for the course ECON MR 102 taught by Professor Huyduong during the Winter '11 term at RMIT Vietnam.
 Winter '11
 HuyDuong

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