| 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? |
