Assume c 40 08y - t g 10 i 20 t 10 where t are
Assume: C = 40 + 0.8(Y - T) G = 10 I = 20 T = 10, where T are taxes.
(a) Calculate Y at equilibrium.
(b) Calculate C, I, and G at equilibrium.
(c) Now assume,
EX = 5 + 4EP/P
IM = 10 + 0.1 (Y - T) - 3EP/P
E = 3
P = 1.5
P = 2
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