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Macroeconomic Model Assignment | Homework For You

Author:
December 7th, 2019
  1. Consider the macroeconomic model:

Y= C + I

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C= a + b √Y

Homework For You

Here: Y is national income, I is fixed investment that does not depend upon CorY,and a>0 and b>0 are parameters. C stands for total consumption by all agents in the economy and, as can be seen from the second equation above, depends upon the level of national income.

Solve for Y . This is called the equilibrium level of income in the economy. Get Economics homework help today

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