Given that; Y = C + I + G C = a + bYd a > 0: 0 < b < 1 Yd = Y – T where: Yd = disposable income T = T0 + tY I = I0 = aggregate investment G = G0 = aggregate government spending i. Identify the type of the economy ii. Drive the formula for multiplier

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05-09-2022
Mathematics

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Given that; Y = C + I + G C = a + bYd a > 0: 0 < b < 1 Yd = Y – T where: Yd = disposable income T = T0 + tY I = I0 = aggregate investment G = G0 = aggregate government spending i. Identify the type of the economy ii. Drive the formula for multiplier

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