Salvatore
c17.tex
V2 - 10/26/2012
12:52 A.M.
Page 566
566
The Income Adjustment Mechanism and Synthesis of Automatic Adjustments
*5.
Given
C
= 100 + 0.8
Y,
M = 150 + 0.20
Y ,
I =
100, and
X
= 350:
(a)
Determine
Y
E
algebraically.
(b)
Show the determination of
Y
E
graphically as
in the top panel of Figure 17.3.
*6.
For the same given as in Problem 5, show the deter-
mination of
Y
E
graphically as in the bottom panel
of Figure 17.3.
7.
Starting with the algebraic and graphical results
of Problems 5 and 6, determine algebraically and
determine graphically the effect on
Y
E
of an
autonomous:
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