Consider a Simple Macro Model with a Constant Price Level

question 65

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.A national income of 1200 results in desired aggregate expenditure of

• A)560.
• B)926.
• C)1004.
• D)1016.
• E)1148.

---

Definitions:

Licensing

The process through which a company grants permission to another entity to use its intellectual property, technology, or product specifications under agreed terms.

Government Permission

The requirement of obtaining approval or authorization from governmental bodies before engaging in certain activities, businesses, or projects.

Market Entry

The action or process of beginning to participate in a market as a new competitor, often involving overcoming barriers to entry.

Overdue Taxes

Taxes that have not been paid by the deadline, possibly incurring penalties and interest charges as a result.