Answer the following questions, which relate to the aggregate expenditures model: a. If Ca is $100, Ig
Question:
Answer the following questions, which relate to the aggregate expenditures model:
a. If Ca is $100, Ig is $50, X n is –$10, and G is $30, what is the economy’s equilibrium GDP?
b. If real GDP in an economy is currently $200, Ca is $100, Ig is $50, X n is –$10, and G is $30, will the economy’s real GDP rise, fall, or stay the same?
c. Suppose that full-employment (and full-capacity) output in an economy is $200. If Ca is $150, Ig is $50, Xn is – $10, and G is $30, what will be the macroeconomic result?
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a Assuming that there is no unplanned inventory investm...View the full answer
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Related Book For 
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
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