Consider the Simplest Macro Model with Demand-Determined Output

question 22

Multiple Choice

Consider the simplest macro model with demand-determined output.The equations are: C = 150 + 0.8Yd,Yd = Y-T,I = 400,G = 700,T = .2Y,X = 130,and IM = 0.14Y.Autonomous expenditures in this model are

• A)1120.
• B)1350.
• C)1380.
• D)2700.
• E)5400.

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