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Refer to the Above Diagram Where Ig Is Gross Investment

Question 63

Multiple Choice

Refer to the above diagram where I<sub>g</sub> is gross investment, X is exports, G is government purchases, S and S<sub>a</sub> are saving before and after taxes respectively, M is imports, and T is net taxes, that is, taxes less transfers.The equilibrium level of GDP for this economy is: A) Y<sub>4</sub>. B) Y<sub>3</sub>. C) Y<sub>2</sub>. D) Y<sub>1</sub>. Refer to the above diagram where Ig is gross investment, X is exports, G is government purchases, S and Sa are saving before and after taxes respectively, M is imports, and T is net taxes, that is, taxes less transfers.The equilibrium level of GDP for this economy is:


A) Y4.
B) Y3.
C) Y2.
D) Y1.

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