The Letters Y,C,I_g,X,and M Stand for GDP,consumption,gross Investment,exports,and Imports Respectively

question 165

Multiple Choice

The letters Y,C,I_g,X,and M stand for GDP,consumption,gross investment,exports,and imports respectively.Figures are in billions of dollars.
C = 26 + .75Y
I_g = 60
X = 24
M = 10
-The equilibrium level of GDP for the above open economy is:

• A) $390
• B) $375
• C) $320
• D) $400

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