. C = 30+ 0.8YD • TR = 0,T = 0 • IP = 70 1. Write down the PAE function. 2. Find equilibrium GDP (Y). Explain in words w

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. C = 30+ 0.8YD • TR = 0,T = 0 • IP = 70 1. Write down the PAE function. 2. Find equilibrium GDP (Y). Explain in words w

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C 30 0 8yd Tr 0 T 0 Ip 70 1 Write Down The Pae Function 2 Find Equilibrium Gdp Y Explain In Words W 1
C 30 0 8yd Tr 0 T 0 Ip 70 1 Write Down The Pae Function 2 Find Equilibrium Gdp Y Explain In Words W 1 (20.95 KiB) Viewed 24 times
. C = 30+ 0.8YD • TR = 0,T = 0 • IP = 70 1. Write down the PAE function. 2. Find equilibrium GDP (Y). Explain in words what the equilibrium represents in this case. 3. Now assume that due to an increase in business confidence, planned investment increases from 70 to 80. Find the new equilibrium GDP.
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