Suppose there is a simultaneous increase in government spending (fiscal policy) and autonomous consumption, what would h
Posted: Thu May 05, 2022 6:20 am
Suppose there is a simultaneous increase in government spending (fiscal policy) and autonomous consumption, what would happen to consumption C, tax generation T and national income Y? C+bT-bY = Co (Consumption Function) (Income-Dependent Tax) T-tY = To -C+Y= Io + Go (National Income Equation)