Consider a Simple Macro Model with a Constant Price Level

question 78

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.The trade balance at equilibrium national income is

• A)a deficit of 36.67.
• B)a deficit of 21.43.
• C)zero.
• D)a surplus of 21.43.
• E)a surplus of 36.67.

---

Definitions:

Longest Period

The most extended duration or time that something exists or continues in effect.

Age Of Viability

The age (about 22 weeks after conception) at which a fetus might survive outside the mother’s uterus if specialized medical care is available.

Weeks

units of time each comprising seven days, commonly used to measure and organize time in a cultural or operational context.

Fetus Sex

The biological sex (male or female) of a fetus determined by its genetic makeup and physical development before birth.