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In Econland,the Components of Planned Aggregate Expenditure Are Given By

Question 103

Multiple Choice

In Econland,the components of planned aggregate expenditure are given by:
C = 500 + 0.75(Y - T) - 500r
I = 300 - 500r
G = 400
NX = 30
If net taxes equal 40 and the central bank sets the interest rate at 0.06 (6%) ,what is short-run equilibrium output?


A) 4,520.
B) 4,560.
C) 4,600.
D) 4,640.
E) 4,680.

Correct Answer:

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