auUncategorized

Order this paper written from scratch on discount

2.Assume the following information represents the National Income Model of a hypothetical economy.

Y = C + I + G,C = a + b(Y – T),T = d + tY, I = I0,G = G0

Where a > 0; 0 < b < 1,d > 0; 0 < t < 1,T = Taxes, I = Investment ,G = Government Expenditure

Explain the economic interpretation of the parameters a,b,d and t.
Find the expression of equilibrium income, consumption and taxes

Order a custom paper written from scratch on practically any subject

Qualified writers only

Plagiarism free guarantee

It will take you just 2 minutes

Discount Code: Disc30