In a mixed open economy, the equilibrium GDP exists where
A) $C _ { a } + I _ { g } + X _ { n } \text { intersects the 45-degree line. }$
B) $C _ { a } + I _ { g } = S _ { a } + T + X$
C) $C _ { a } + I _ { g } + X _ { n } + G = \text { GDP. }$
D) $C _ { a } + I _ { g } + X _ { n } = S _ { a } + T$

Question

Quizplus · Accepted Answer

In a mixed open economy, the equilibrium GDP (Gross Domestic Product) is where the aggregate expenditures equal the total output. This is represented by the equation $C _ { a } + I _ { g } + X _ { n } + G = \text { GDP }$, where $C _ { a }$ is autonomous consumption, $I _ { g }$ is planned investment, $X _ { n }$ is net exports (exports minus imports), and $G$ is government spending. This equation correctly sums up all components of aggregate demand in an open economy with government activity.

In a Mixed Open Economy, the Equilibrium GDP Exists Where Ca+Ig+Xn intersects the 45-degree line. C _ { a } + I _ { g } + X _ { n } \text { intersects the 45-degree line. }Ca​+Ig​+Xn​ intersects the 45-degree line.

In a Mixed Open Economy, the Equilibrium GDP Exists Where $C _ { a } + I _ { g } + X _ { n } \text { intersects the 45-degree line. }$