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Build SD model to analyze the following Keynesian model: Consumption function...
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Build SD model to analyze the following Keynesian model:
Consumption function : C(t) = 500 + 0.75Yd(t)
Disposable income : Yd = Y – Tx
Planned expenditures : E(t) = C(t) + I + G
Investment : I = 200
Government spending : G = 1400
Taxes : Tx = 400 + 0.2Y
Income short-run adjustment : Δ
Does a rise in autonomous consumption spending or a rise in investment or a rise in government spending by 50 leads to the same impact on equilibrium income Y(t) ?
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