CFA CFA Level 1 Aggregate Demand Equation

Aggregate Demand Equation

  • This topic has 1 reply, 2 voices, and was last updated Jun-19 by dollface.
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  • cfastaf
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    Can anyone help solve this equation just don’t understand the steps to get to the answer:

    Y=4500/P+625+87.5[(5821.43-Y)/28.57]

    The answer is Y=1107.69/P+4542.31

    Thank you,

    dollface
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    Here you go:

    Y = 4500/P + 625 + 87.5[(5821.43-Y)/28.57]

    Y = 4500/P + 625 + 17829.02 – 3.06Y

    4.06Y = 4500/P + 18454.02

    Y = 1108.4/P + 4545.3

    I know it’s not exactly the answer you provided but given rounding error it’s close enough.

    flies away

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