Consider the Following Simple Macro Model with a Constant Price

question 48

Multiple Choice

Consider the following simple macro model with a constant price level and demand-determined output: C = 150 + 0.9 , = 0.8Y,I = 400,G = 700,T = (0.2) Y,X = 130,IM = (0.08) Y.Equilibrium national income is

• A)1380.00.
• B)1916.67.
• C)2156.25.
• D)3833.33.
• E)4928.57.

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