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Consider a Simple Macro Model with a Constant Price Level

Question 85

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 150 + 0.84Y,I = 400,G = 700,T = 0,X = 130,IM = 0.08Y.Equilibrium national income is


A) 1816.
B) 5750.
C) 7307.
D) 7935.
E) 17 250.

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