In a Certain Economy, the Components of Aggregate Spending Are

question 18

Multiple Choice

In a certain economy, the components of aggregate spending are given by: C = 500 + 0.8(Y - T) - 300r
I = 200 - 400r
G = 200
NX = 10
T = 150
Given the information about the economy above, what is the short-run equilibrium output if the real interest rate is 5 percent?

• A) 944
• B) 3,775
• C) 3,810
• D) 1,359

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