In Macroland,the Components of Planned Aggregate Expenditure Are Given By

question 61

Multiple Choice

In Macroland,the components of planned aggregate expenditure are given by:
C = 100 + 0.9(Y - T) - 500r
I = 150 - 1,000r
G = 200
NX = 50
If net taxes equal 100 and the central bank sets the interest rate to equal 0.05 (5%) ,what is short-run equilibrium output?

• A) 3,200.
• B) 3,350.
• C) 3,500.
• D) 3,650.
• E) 3,800.

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