Assume that equilibrium GDP (Y) is 5,000. Consumption (C) is given by the equation C = 500 + 0.6(Y - T). Taxes (T) are equal to 1,000. Government spending is 600. In this case, equilibrium investment is:
A)600.
B)1,100.
C)1,500.
D)2,200.

Question

Quizplus · Accepted Answer

The Answer of Assume that equilibrium GDP (Y) is 5,000. Consumption (C) is given by the equation C = 500 + 0.6(Y - T). Taxes (T) are equal to 1,000. Government spending is 600. In this case, equilibrium investment is:
A)600.
B)1,100.
C)1,500.
D)2,200.

Assume That Equilibrium GDP (Y) Is 5,000