Solve the national-income modelY = C + lo + GoC = 160 + 0.55Y – 0.004Y²|Go = 0.25 Y%Dwhere Io= 40 dan To140. Does the government incur a budget surplus or abudget deficit according to this model?

Answer: Given, Y=C+I0+G0C=160+0.55Y-0.00Y2G0=0.25YI0=40T0=140 Note: Since Y is given in the equation…

Solve the national-income model Y = C + lo + Go C = 160 + 0.55Y – 0.004Y² Go = 0.25 Y where Io budget deficit according to this model? 40 dan T, = 140. Does the government incur a budget surplus or a

Solve the national-income model Y = C + lo + Go C = 160 + 0.55Y – 0.004Y² Go = 0.25 Y where Io budget deficit according to this model? 40 dan T, = 140. Does the government incur a budget surplus or a

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section18.5: Should The Government Balance Its Budget?

Problem 5QQ

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Question

Solve the national-income model
Y = C + lo + Go
C = 160 + 0.55Y – 0.004Y²
|
Go = 0.25 Y
%D
where Io
= 40 dan To
140. Does the government incur a budget surplus or a
budget deficit according to this model?

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