Alzheimer's problem of the day. Suppose Co=160, I = 150, G=160, and Yd = Y-100. What is equilibrium, Disposable Income, and Consumption spending?
Although my graph doesn't look right, I confirmed it on a ti-83. I have equilbrium at 1000, disposable income at 900, and consumption equal to 700.
I will be teaching macro soon so I'm boning up on the theory.

No comments:
Post a Comment