Use the Information Below to Answer the Following Questions

question 11

Multiple Choice

Use the information below to answer the following questions.
Fact 27.5.2
The economy of Tinseltown has a consumption function of C = 15 + 0.7Y , investment equal to 8, government expenditure equal to 12, exports equal to 20, and an import function of M = 0.2Y.
-Refer to Fact 27.5.2. What is equilibrium real GDP for this economy?

• A)110
• B)55
• C)27.5
• D)70
• E)550

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