Consider a Simple Macro Model with a Constant Price Level

question 29

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 60 + 0.43Y,I = 150,G = 260,T = 0,X = 90,IM = 0.06Y.Equilibrium national income is

• A)560.00.
• B)888.89.
• C)1142.85.
• D)1302.33.
• E)1513.50.

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Definitions:

National Production

The total value of all goods and services produced within a country's borders over a given time period.

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Detailed examinations of a subject (person, group, or organization) to uncover and understand complex issues or phenomena.

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Short, simple stories used to illustrate a moral or spiritual lesson, often found in religious texts.

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