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(c0 ¯IG−c1T) has two factors The term c0 ¯IG−c1T contains fixed parameters and exogenous variables G and T can be autonomously set by the government (fiscal policy) This term is called autonomous spending Note c0,I,G >0 Unless taxes T are extremely high, autonomous spending will be positive The term 1 1−c1.

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0) c (Y AE C 45o Line (AE = Y) all possible equilibria Intermediate Macroeconomics 6 Autonomous spending multiplier Steps 2 and 3 Step 2 State the Equilibrium Condition Y = AE Step 3 Substitute AE from Step 1 into Step 2 Y = C 0 c (Y I G or Y = (C 0 I 0 G ) c (Y. 1 Notice regarding Final Result for NU OnCampus PGD in LIS 19 Download. Title INBC2RUpdf Author kkasprzak Created Date 8/19/14 449 PM.

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P a rti c ipant a g r e e s to a ss u me a n y a nd a ll risks invo l v e d in or a rising f r o m p a rti c ipating including, but not l i m i t e d to, risks of bod i l y in j u r y, d ea th, pro p e r t y d a m a g e, f a l l s, kicks, b i tes, c ol l is i ons with v e hicl e s, m ovingor stationa r y ob j ec ts, li m i ted e me r g e n c. Recall that Y = C I G X – M Y is national income, also called GDP (gross domestic product) What does each letter on the right stand for?.