Consider a Simple Macro Model with a Constant Price Level

question 85

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 150 + 0.84Y,I = 400,G = 700,T = 0,X = 130,IM = 0.08Y.Equilibrium national income is

• A)1816.
• B)5750.
• C)7307.
• D)7935.
• E)17 250.

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Definitions:

Didyma

An ancient Greek sanctuary located on the west coast of Turkey, renowned for its temple of Apollo and its prophetic oracle.

Turkey

A country located at the crossroads of Europe and Asia, known for its rich history, cultural diversity, and significant contributions to art, cuisine, and architecture.

Cella

The chamber at the center of an ancient temple; in a classical temple, the room (Greek, naos) in which the cult statue usually stood.

Deity

A god or goddess in a polytheistic religion, considered divine and often worshipped.