You are given the following information on the various sectors of the economy. Derive the aggregate expenditure function
C = 100 + 0.75Y
I = 200 + 0.20Y
G = 500
X = 250
M = 100 + 0.10Y
E = C + I + G + X - M
E = (100 + 0.75Y) + (200 + 0.20Y) + 500 + 250 - (100 + 0.10Y)
E = 950 + 0.85Y
Economics
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Mister Jones was selling his house. The asking price was $220,000, and Jones decided he would take no less than $200,000. After some negotiation, Mister Smith purchased the house for $205,000. Smith's consumer surplus is
A) $5,000. B) $15,000. C) $20,000. D) not able to be calculated from the information given.
Economics
Which institution is least likely to default on a bond?
A. Local government. B. Small corporation. C. U.S. federal government. D. Large corporation.
Economics