Answers
Y | C | I | G | NX | AE = C+I+G+NX |
4000 | 3925 | 100 | 150 | 25 | 4200 |
4100 | 4000 | 100 | 150 | 25 | 4275 |
4200 | 4075 | 100 | 150 | 25 | 4350 |
4300 | 4150 | 100 | 150 | 25 | 4425 |
4400 | 4225 | 100 | 150 | 25 | 4500 |
4500 | 4300 | 100 | 150 | 25 | 4575 |
4600 | 4375 | 100 | 150 | 25 | 4650 |
4700 | 4450 | 100 | 150 | 25 | 4725 |
4800 | 4525 | 100 | 150 | 25 | 4800 |
4900 | 4600 | 100 | 150 | 25 | 4875 |
5000 | 4675 | 100 | 150 | 25 | 4950 |
c) If government expenditure grows to $150, the new equilibrium level of income is $4,800.
Equilibrium occurs where, Y = AE
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