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OpenStudy (anonymous):
Please show me how to do this. C=500+0.75Y The current level of real GDP is $6000
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OpenStudy (anonymous):
What is the question asking you to solve for?
OpenStudy (anonymous):
if it's for y then set C= your GDP and find out how many years it takes you to get to that number.
OpenStudy (anonymous):
6000=500+.75y solve for y.
OpenStudy (anonymous):
In a simple economy (assumed there is no taxes;thus , Y is disposable income), the consumption function is: C=500 + 0.75Y. The current level of real GDP is $6000. At this level the consumption will be ?? and the savings will be ??.
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