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    Equilibrium Income

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    Suppose that the aggregate consumption function is C = 100 + 0.80(Y - T),
    taxes are T = 10 + .05Y, imports are M = 5 + 0.10Y, investment is $400, government
    expenditures are $200, and exports are $100.

    Part a - Calculate Equilibrium Income (Y)
    Part b - Calculate Consumption (C)
    Part c - Calculate Taxes (T)
    Part d - Calculate Net Imports (X - M)

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    https://brainmass.com/economics/general-equilibrium/equilibrium-income-18681

    Solution Preview

    Part a - Calculate Equilibrium Income (Y)
    Write C = 100 + 0.80(Y - T)= 100 + 0.80(Y -10 + .05Y)= 100 + 0.84Y-8
    C= 92+ 0.84Y
    At the ...

    Solution Summary

    Equilibrium Income is assessed.

    $2.49

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