Macroeconomics for BusinessTU Board 2081
Periodt₁t₂t₃t₄t₅t₆t₇t₈t₉Yd:05001000150020002500300035004000C:4008001200160020002400280032003600I:100100100100100100100100100ΔI:200200200200200200200200200a) Derive linear consumption and saving…
15Periodt₁t₂t₃t₄t₅t₆t₇t₈t₉Yd:05001000150020002500300035004000C:4008001200160020002400280032003600I:100100100100100100100100100ΔI:200200200200200200200200200a) Derive linear consumption and saving functions. b) Graph Yd, C+I, and C+I+ΔI. c) Determine equilibrium output. What will be the new equilibrium output when planned investment increases by 200 units? Is it consistent when it is computed by investment multiplier? d) What are the leakages of investment multiplier? Explain any two.
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