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a) What is the equilibrium national income by using aggregate-expenditure approach?

Solution:

Aggregate Expenditure = C + I + G = GDP

GDP = Yd + NT

C=20 + 0.8Yd

I = 200

G = 100

T = 50

GDP= 20 + .8 (yd)+200 +100

From equation 1 is equated with equation 2, we can derive the value of Yd

C + I + G = Yd + NT- equation 3

…

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## Introduction

a) What is the equilibrium national income by using aggregate-expenditure approach?

Solution:

Aggregate Expenditure = C + I + G = GDP

GDP = Yd + NT

C=20 + 0.8Yd

I = 200

G = 100

T = 50

GDP= 20 + .8 (yd)+200 +100

From equation 1 is equated with equation 2, we can derive the value of Yd

C + I + G = Yd + NT--- equation 3

...

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a) What is the equilibrium national income by using aggregate-expenditure approach?
Solution:
Aggregate Expenditure = C + I + G = GDP
GDP = Yd + NT
C=20 + 0.8Yd
I = 200
G = 100
T = 50
GDP= 20 + .8 (yd)+200 +100
From equation 1 is equated with equation 2, we can derive the value of Yd
C + I + G = Yd + NT- equation 3

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