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Consider the following model i) C = 1650 + mpc (Y tY) ii) I = 800 iii) G = 500 iv) X- M = 500 - mpi (Y) where: t
the (flat) tax rate%3D mpc = the marginal propensity to consume mpi = the marginal propensity to import%3D suppose mpc = .60, t =.15, mpi = .2 Given the information above, solve for the equilibrium output: OY' = 5500%3D O Y = 5000 OY 3450 O Y* 1650!!
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