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Thread: Macro-economics

  1. #1
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    Macro-economics

    Hello

    Can you help me please about the next exercise:

    In a certain economy, the following behavioral functions are presented (in millions dollars):
    Disposable Income: Yd
    Product: Y
    Private Consumption: C = 160 + 0.6Yd
    Investment: I = 50 + 0.15Y
    Public consumption: G = 100
    The government doesn't invest, and assume that in the state of origin (outside of the country) the government finances all its expenses by taxes.
    All firm profits are divided, and the tax is fixed.
    Find the private consumption as a function of national product.

    Thanks!
    Last edited by IlanSherer; May 4th 2018 at 11:25 AM.
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