Consider a Simple Macro Model with a Constant Price Level

question 130

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 120 + 0.86Y,I = 300,G = 520,T = 0,X = 180,IM = 0.12Y.Equilibrium national income is

• A)2037.48.
• B)3615.24.
• C)4000.00.
• D)4307.69.
• E)8000.00.