Consider a Simple Macro Model with a Constant Price Level

question 121

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 150 + 0.84Y,I = 400,G = 700,T = 0,X = 130,IM = 0.08Y.The trade balance at equilibrium national income is a

• A)deficit of 504.8.
• B)deficit of 460.0.
• C)deficit of 330.0.
• D)surplus of 125.0.
• E)surplus of 15.3.