The Letters Y,C_a,I_g,X_n,G,and T Stand for GDP,consumption,gross Investment,net Exports,government Purchases,and

question 126

Multiple Choice

The letters Y,C_a,I_g,X_n,G,and T stand for GDP,consumption,gross investment,net exports,government purchases,and net taxes respectively.Figures are in billions of dollars.
C_a = 25 + .75(Y - T )
I_g = I_g0 = 50
X_n = X_n0 = 10
G = G₀ = 70
T = T₀ = 30
-Refer to the above information.The equilibrium level of GDP for this economy is:

• A) $600
• B) $530
• C) $415
• D) $400

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