Assume: C = 50 + 0.6 (Y - T)

question 50

Essay

Assume:
C = 50 + 0.6 (Y - T)
G = 15
I = 15
T = 2
(a)Calculate Y at equilibrium
(b)Calculate C
(c)Assume
EX = 4 + 3EP*/P
IM = 8 + 0.1 (Y - T)- 2EP*/P
E = 3
P *= 1
P = 1.5
Find equilibrium Y.

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, typically resulting from factors like mass production and bulk purchasing.

Functional Lines

The demarcation of responsibilities and tasks in an organization based on specific functions such as marketing, finance, or human resources.

Functional Expertise

Specialized knowledge or proficiency in a particular area or discipline within a professional context.

Economies of Scale

The cost advantage that arises with increased output of a product, leading to a lower cost per unit.