Which of the Following Equations Illustrates the Equilibrium Level of Income

question 57

Multiple Choice

Which of the following equations illustrates the equilibrium level of income with respect to the simple Keynesian closed-economy model?

• A)Y = [1/(1 − b)](a − bT − I + G)
• B)Y = [1/(1 − b)](a + bT + I + G)
• C)Y = [1/(1 + b)](a − bT − I − G)
• D)Y = [1/(1 − b)](a − bT + I + G)
• E)Y = (1 − b)(a + bT + I + G)

---

Definitions:

Supporters

Individuals or groups that provide backing, assistance, or endorsement to a cause, person, or organization.

Change

The process or act of becoming different in form, nature, or quality, often implying improvement or evolution.

Organizational Change

Refers to the process by which organizations transform their structures, strategies, processes, cultures, or overall performance to adapt to internal or external pressures, enhancing their effectiveness and ensuring survival or growth.

Negative

Characterized by or expressing a lack of approval or support, often leading to adverse outcomes.