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Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn
Edition 20ISBN: 978-0077660772Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn
Edition 20ISBN: 978-0077660772 Exercise 25
Answer the following questions, which relate to the aggregate expenditures model: LO5
a. If C is $100, Ig is $50, Xn is -$10, and G is $30, what is the economy's equilibrium GDP?
b. If real GDP in an economy is currently $200, C is $100, Ig is $50, Xn is -$10, and G is $30, will the economy's real GDP rise, fall, or stay the same?
c. Suppose that full-employment (and full-capacity) output in an economy is $200. If C is $150, Ig is $50, Xn is -$10, and G is $30, what will be the macroeconomic result?
a. If C is $100, Ig is $50, Xn is -$10, and G is $30, what is the economy's equilibrium GDP?
b. If real GDP in an economy is currently $200, C is $100, Ig is $50, Xn is -$10, and G is $30, will the economy's real GDP rise, fall, or stay the same?
c. Suppose that full-employment (and full-capacity) output in an economy is $200. If C is $150, Ig is $50, Xn is -$10, and G is $30, what will be the macroeconomic result?
Explanation
Verified
Verified
(a) The equilibrium occurs at a point wh...
Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn
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