1. Use the following information from a fictional economy:Consumption, C = 250 + 0.8 YdInvestment, I = 200Government Spending, G = 100Taxes, T = 0.2 YNet Exports, NX = 50 - 0.4 YDisposable Income, Yd = Y-T%3DReal GDP = Y%3D(a) What is equilibrium Real GDP (Y) for this economy?(b) What is equilibrium C for this economy?(c) What is equilibrium NX for this economy?(d) What is equilibrium T for this economy?(e) What is equilibrium YD for this economy?

NOTE:Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

1. Use the following lon from a fictional economy: Consumption, C = 250 + 0.8 Yd Investment, I = 200 Government Spending, G = 100 Taxes, T = 0.2 Y Net Exports, NX = 50 - 0.4 Y Disposable Income, Yd = Y-T %3D %3D %3D %3D Real GDP = Y (a) What is equilibrium Real GDP (Y) for this economy? (b) What is equilibrium C for this economy? (c) What is equilibrium NX for this economy?

1. Use the following lon from a fictional economy: Consumption, C = 250 + 0.8 Yd Investment, I = 200 Government Spending, G = 100 Taxes, T = 0.2 Y Net Exports, NX = 50 - 0.4 Y Disposable Income, Yd = Y-T %3D %3D %3D %3D Real GDP = Y (a) What is equilibrium Real GDP (Y) for this economy? (b) What is equilibrium C for this economy? (c) What is equilibrium NX for this economy?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section: Chapter Questions

Problem 2DQ

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