Refer to the above data.If gross investment is $120, the equilibrium level of GDP will be:
A)$380
B)$370
C)$360
D)$400

Name: Refer to the above data.If gross investment is $120, the equilibrium level of GDP will be: A)$380 B)$370 C)$360 D)$400
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Question

Refer to the above data.If gross investment is $120, the equilibrium level of GDP will be:
A)$380 
B)$370 
C)$360 
D)$400

Quizplus · Accepted Answer

At equilibrium,
Y = C + I
Y = 250 + 0.5(Y-250) + 120
Y = 370
Therefore, the equilibrium level of GDP will be $370.

Refer to the Above Data