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4 February, 02:52

Given the equations for c , i , g , and nx below, what is the equilibrium level of gdp? c = 2,000 + 0.9y i = 2,500 g = 3,000 nx = 400

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  1. 4 February, 03:22
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    The Equilibrium Level of GDP is 79,000.

    Solution:

    E = C+I+G+NX

    E = Y

    Y = (2,000 + 0.9y) + 2500 + 3000 + 400

    Y = 0.9y + 7900

    Y-.09y = 0.9y-0.9y + 7900

    0.1y = 7900

    Y = 7900/0.1

    Y = 79,000
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