Answer:
C=400 + 0.8Y
I = 100
Y($) |
C($) { C=400+0.8Y} |
I($) | AE ($) {AE = C+I} |
---|---|---|---|
0 | 400 | 100 | 500 |
1250 | 400 + 0.8(1250) = 1400 | 100 | 1500 |
2500 | 400 + 0.8 (2500) = 2400 | 100 | 2500 |
3750 | 400 + 0.8 (3750) = 3400 | 100 | 3500 |
5000 | 400 + 0.8(5000) = 4400 | 100 | 4500 |
6250 | 400 + 0.8 (6250) = 5400 | 100 | 5500 |
Consider a simple model like the one developed in this chapter. The following equations show the...
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