Macro-economics

Mar 2017
4
0
Israel
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!
 
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