Sunday, February 03, 2013

Equilibrium

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.


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