Consider the following simple macro model with a constant price level and demand-determined output: C = 150 + 0.9 , = 0.8Y,I = 400,G = 700,T = (0.2)Y,X = 130,IM = (0.08)Y.Equilibrium national income is
A)1380.00.
B)1916.67.
C)2156.25.
D)3833.33.
E)4928.57.

Question

Consider the following simple macro model with a constant price level and demand-determined output: C = 150 + 0.9  ,  = 0.8Y,I = 400,G = 700,T = (0.2)Y,X = 130,IM = (0.08)Y.Equilibrium national income is
A)1380.00. 
B)1916.67. 
C)2156.25. 
D)3833.33. 
E)4928.57.

Quizplus · Accepted Answer

The Answer of Consider the following simple macro model with a constant price level and demand-determined output: C = 150 + 0.9  ,  = 0.8Y,I = 400,G = 700,T = (0.2)Y,X = 130,IM = (0.08)Y.Equilibrium national income is
A)1380.00. 
B)1916.67. 
C)2156.25. 
D)3833.33. 
E)4928.57.

Consider the Following Simple Macro Model with a Constant Price