C = $5 million + 0.9(1 - 0.1)Y
I = $7 million
G = $6 million
NX = $1 million
Based on the above data,the equilibrium level of GDP is

Name: C = $5 million + 0.9(1 - 0.1)Y I = $7 million G = $6 million NX = $1 million Based on the above data,the equilibrium level of GDP is
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Question

C = $5 million + 0.9(1 - 0.1)Y
 I = $7 million
G = $6 million
NX = $1 million
Based on the above data,the equilibrium level of GDP is

Quizplus · Accepted Answer

The equilibrium GDP is calculated as Y = C + I + G + NX. Substituting the values, Y = ($5 million + 0.9(1 - 0.1)Y) + $7 million + $6 million + $1 million. Solving for Y gives $100 million.

C = $5 Million + 0.9(1 - 0.1)Y