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The Letters Y, Ca, Ig, Xn, G, and T Stand

Question 94

Multiple Choice

The letters Y, Ca, Ig, Xn, G, and T stand for GDP, consumption, gross investment, net exports, government purchases, and net taxes respectively.Figures are in billions of dollars.Ca = 25 + .75(Y - T ) Ig = Ig0 = 50
Xn = Xn0 = 10
G = G0 = 70
T = T0 = 30
Refer to the above information.The equilibrium level of GDP for this economy is:


A) $600
B) $530
C) $415
D) $400

Correct Answer:

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