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Calculate y at equilibrium

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Reference no: EM131527713

Assume: C = 40 + 0.8(Y - T) G = 10 I = 20 T = 10, where T are taxes.

(a) Calculate Y at equilibrium.

(b) Calculate C, I, and G at equilibrium.

(c) Now assume,

EX = 5 + 4EP/P

IM = 10 + 0.1 (Y - T) - 3EP/P

E = 3

P = 1.5

P = 2

Reference no: EM131527713

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