Which of the following equations does not state a condition required for equilibrium output:? A) Y=C(Y^d)+I+G+CA(EP*/P,Y^d) B) Y=C(Y-T)+I+G+CA(EP*/P,Y-T) C) Y=D(EP*/P,Y-T,I,G) D) R = R* + (EP/E) E) Y=D(EP*/P,Y^d,I,G)

Question

Quizplus · Accepted Answer

Equation D is not related to the condition for equilibrium output. It represents the equation for the determination of exchange rate. The other equations represent conditions such as consumption, investment, government spending, and net exports that affect equilibrium output.

Which of the Following Equations Does Not State a Condition