Question

Answer the following questions, which relate to the aggregate expenditures model: Instructions: Enter your answer as a whole number. a. Given the following: Ca = $110, Ig = $60, Xn = − $10, and G = $40, what is the economy’s equilibrium GDP?

Answer 1

Economy’s equilibrium GDP =$200

Step-by-step explanation:

Given:

Ca = $110

Ig = $60

Xn = − $10

G = $40,

Find:

Economy’s equilibrium GDP

Computation:

Economy’s equilibrium GDP = C + I + G + [X-M]

Economy’s equilibrium GDP = 110 + 60 + 40 + (-10)

Economy’s equilibrium GDP =$200