Derive the expenditure multiplier for the economy. Y = C + I + G + (X – M) C = C a + cYd : where Ca = autonomous consump

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answerhappygod
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Derive the expenditure multiplier for the economy. Y = C + I + G + (X – M) C = C a + cYd : where Ca = autonomous consump

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Derive the expenditure multiplier for the economy.
Y = C + I + G + (X – M)
C = C a + cYd : where Ca = autonomous consumption, and Yd=
(1-t)Y i.e. disposable income.
And t is the tax rate.
M = Ma + mY : where Ma = autonomous consumption, and m=marginal
propensity to import
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