Questions
SESS0008_24-25 MCQ test (30 minutes)
Single choice
Indicate the equilibrium level of output in an economy where: C = 180 + 0.5 Yd I = 100 G = 160 T = 120
Options
A.a. 880
B.b. 800
C.c. 780
D.d. 760
View Explanation
Verified Answer
Please login to view
Step-by-Step Analysis
To find the equilibrium level of output, I’ll start by expressing consumption in terms of income after taxes. Given C = 180 + 0.5 Yd and T = 120, the disposable income is Yd = Y − T = Y − 120. So C = 180 + 0.5(Y − 120) = 180 + 0.5Y − 60 = 120 + 0.5Y.
Next, aggregate demand ......Login to view full explanationLog in for full answers
We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!
Similar Questions
Consider a simple Keynesian economy described by the following equations: What is the equilibrium level of output in this economy?
An open economy, with government, is characterized by the following equations - C = 100 + 0.7Yd ; where C is consumption and Yd is disposable income I = 150 ; where I is investments G = 60 ; where G is government expenditures T = 50 ; where T is taxes X = 60 ; where X is exports M = 0.1Y ; where M is imports and Y is income Find the equilibrium output (Y) in the economy.
An open economy, with government, is characterized by the following equations - C = 100 + 0.75Yd ; where C is consumption and Yd is disposable income I = 250 ; where I is investments G = 75 ; where G is government expenditures T = 50 ; where T is taxes X = 100 ; where X is exports M = 0.3Y ; where M is imports and Y is income Find the equilibrium output (Y) in the economy.
An economy is described by the following equations: C = 1600 + 0.8(Y – T) I = 1000 G = 1800 T = 3000 + 0.01 Y What is the equilibrium level of output in this economy?
More Practical Tools for Students Powered by AI Study Helper
Making Your Study Simpler
Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!