Consider a Simple Macro Model with a Constant Price Level

question 72

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.Desired consumption expenditure at equilibrium national income is

• A)3113.54.
• B)3307.73.
• C)3824.61.
• D)4250.00
• E)Not enough information to determine

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Definitions:

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