Please provide the following answers (round response to nearest two decimals):
1. Equilibrium GDP(Y)
2. Disposable Income (YD)
3. Consumption spending (C)
Homework Answers
Answer
1)
equilibrium GDP is at
Y=C+I+G
Y=180+0.70Y+190+120
0.3Y=490
Y=1633.33333
The equilibrium GDP is $1633.33333
=====
2)
Disposable income =Y-T=1633.33333-100=1533.33333
=====
3)
Consumption spending is
C=180+0.7*1633.33333
=1323.33333
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