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(Advanced Analysis)Answer the Question on the Basis of the Following C=40+0.8YIg=602ii=iˉ=10\begin{aligned}C & = 40 + 0.8 Y \\I _ { g } & = 60 - 2 i \\i & = \bar { i } = 10\end{aligned}

Question 116

Multiple Choice

(Advanced analysis) Answer the question on the basis of the following information for a private closed economy where C is consumption,Y is the gross domestic product,Ig is gross investment,and i is the interest rate: C=40+0.8YIg=602ii=iˉ=10\begin{aligned}C & = 40 + 0.8 Y \\I _ { g } & = 60 - 2 i \\i & = \bar { i } = 10\end{aligned} Refer to the information.The equilibrium level of GDP in this economy is:


A) $240.
B) $300.
C) $360.
D) $400.

Correct Answer:

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