Law homework help
Law homework help. I have the following information about an economy:C = 50 + 0.8*Yd Consumption FunctionI = 100 Investment FunctionG = 130 Government SpendingT = 0.1*Y TaxesYd = Y – T Disposable Income1. Show that if Y = AE then I + G = S + T where S is saving.2. What is the Government Budget position (G – T) when the economy is at the equilibrium level of GDP?3. If government increases spending from 130 to 186 what happens to equilibrium GDP? to the government budget balance?
