Posted by: iamme December 15, 2005
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?
simple economy--------- no govt and no foreign sector involved.
hence GPD=NI=PI=DI=C+I
GDP=300
C=260
Planned invvestment=50
Unplanned=-10
Marginal Propensity to Consume(MPC)=0.5
WHta is the equlibrium level of GDP???
any help will be greatly appreciated..:)