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Equilibrium Equation Assignment | Homework For You

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December 6th, 2019

1.     Suppose the economy of Clintonia has the following macroeconomic relations:

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Homework For You

Consunption function:     C = 2,000 + 0.75 (Y – T)

Investment function:        I = 12,000 – 1,500 r

Govt. spending:                G = 23,000;                           Exports: X = 4,000

Import function:              M = 5,000 + 0.1 Y;

Tax function:                   T = 5,000 + 0.20Y

Money demand function: Md = 0.50 Y – 3,500 r;

Money supply:                 Ms = 31,400                           Potential output:  Yp = 63,400

Equilibrium condition for real sector: Y = C + I + G +(X – M)

What is the equilibrium equation …. y=______-______r. Get Economics homework help today

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