Posted by **Jonathan** on Saturday, February 6, 2010 at 5:54pm.

Suppose that the consumption function is C=100+.8(y-t). Initially investment and government expendtures are I=75 and G=150 and taxes are T=50.

1.Depict this economy using the keynesian cross.

calulate the initial equilibrium income.

how much will income increas if government expendtures increase to g=200.

- economics -
**mirtha**, Monday, April 25, 2016 at 2:10pm
150

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