Goods market: Calculating the equilibrium income
3:46
YouTubeBernard
Goods market: Calculating the equilibrium income
Show how to calculate the equilibrium level of income for a goods market model with a lump sum tax (T). The equilibrium level of income = multiplier times autonomous spending. The multiplier is equal to 1/1-c and autonomous spending = autonomous consumption + autonomous investment + government spending -- c(taxes). Note that you subtract c(T).
101.3K viewsJan 18, 2012
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