Assume in a closed economy:
C = 50 + 0.6 (Y - T)
G = 15
I = 15
T = 2
(a) Calculate Y at equilibrium
(b) Calculate C
(c) Assume the economy is open
EX = 4 + 3EP /P
IM = 8 + 0.1 (Y - T) - 2EP /P
E = 3
P = 1
P = 1.5
Find equilibrium Y.

Question

Assume in a closed economy:
C = 50 + 0.6 (Y - T)
G = 15
I = 15
T = 2
(a) Calculate Y at equilibrium
(b) Calculate C
(c) Assume the economy is open
EX = 4 + 3EP  /P
IM = 8 + 0.1 (Y - T) - 2EP  /P
E = 3
P  = 1
P = 1.5
Find equilibrium Y.

Quizplus · Accepted Answer

The Answer of Assume in a closed economy:
C = 50 + 0.6 (Y - T)
G = 15
I = 15
T = 2
(a) Calculate Y at equilibrium
(b) Calculate C
(c) Assume the economy is open
EX = 4 + 3EP  /P
IM = 8 + 0.1 (Y - T) - 2EP  /P
E = 3
P  = 1
P = 1.5
Find equilibrium Y.

Assume in a Closed Economy