Q. In the simple Keynesian model, if the tax function is given by T=0.15Y and the consumption function is C= 50 + 0.7 YD then a 10-unit ncrease in government spending would increase equilibrium income by (Solved)
1. 10 units
2. 11.2 units
3. 22.4 units
4. 30 units
- b. 11.2 units