[Solution Library] The economy of Florin is given by the equations: Y = C + I + G C = 250 + .8*Y d Y d = Y - T I = 50 G = 100 T = 100 What is equilibrium
Question: The economy of Florin is given by the equations:
Y = C + I + G
C = 250 + .8*Y d
Y d = Y – T
I = 50
G = 100
T = 100
- What is equilibrium GDP?
- What is the government spending multiplier? What is the tax multiplier? Why do they differ?
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