Consider a Simple Macro Model with a Constant Price Level

question 85

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 150 + 0.84Y,I = 400,G = 700,T = 0,X = 130,IM = 0.08Y.Equilibrium national income is

• A)1816.
• B)5750.
• C)7307.
• D)7935.
• E)17 250.