In a simple economy, the savings function is Upper S equals negative 200 plus 0.20 Upper Y. Investment is equal to 500....
In a simple economy, the savings function is Upper S equals negative 200 plus 0.20 Upper Y. Investment is equal to 500. In this economy, equilibrium GDP is $ nothing. (Round your answer the nearest dollar.)
Homework Answers
In a simple economy,
S=-200+0.20Y
I=500
In equilibrium
S=I
-200+0.20Y=500
0.20Y=500+200
Y=700/0.20
=3,500
the savings function is Upper S equals negative 200 plus 0.20 Upper Y. Investment is equal to 500. In this economy, equilibrium GDP is $ nothing. (Round your answer the nearest dollar.)
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