Y=C+I+G

Putting values from previous equation,

Y=85+0.5Y_{d} +85 +60

or, Y=85+0.5(Y-T) +85 +60 as Y_{D}=Y-T

Y=85+0.5[Y-(-50+0.25Y)] +85+60

Y=255+0.375Y

Y=$408

T=-50+0.25Y

=-50+0.25*408=$52

(G-T)=85+0.5Y_{D }–T

=85+0.5[Y-(-50+0.25Y)]-(-50+0.25Y)

=$211

...........................................................................................................

=-50+0.25*408

=$52

.............................................................................................................

Mail me at kumaradesh134@gmail.com for more help.

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