The following equations describe consumption, investment, government spending, taxes, and net exports in the country of Economika.
Cs = 300 + 0.80(Y - T)
I = 700
G = 450
T = 450
X = 100
In Economika, equilibrium GDP is equal to $...... . (Round your answer the nearest dollar.)
Equilibrium GDP is the level of output where production of output generates income that is sufficient to buy that output. At equilibrium GDP, aggregate expenditure is equal to total production in the economy.
Answer and Explanation:
At equilibrium GDP, aggregate expenditure in the economy is equal to real GDP (total production of goods and services). Aggregate expenditure (AE) in...
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from Intro to Business: Help and ReviewChapter 3 / Lesson 17
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