Suppose a closed economy has an aggregate consumption function given by C = 50 + 0.50Yd and generates $2600 output and income in equilibrium. Suppose also that the government spends 500 and imposes a lump-sum tax of 50. %3D What is the level of intended investment? (round your answer to the nearest whole value)

Suppose a closed economy has an aggregate consumption function given by C = 50 + 0.50Yd and generates $2600 output and income in equilibrium. Suppose also that the government spends 500 and imposes a lump-sum tax of 50. %3D What is the level of intended investment? (round your answer to the nearest whole value)

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 1.1P

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