Which of the following equations does NOT state a condition required for equilibrium output:?
A) Y = C(Yᵈ) + I + G + CA(EP*/P,Yᵈ)
B) Y = C(Y - T) + I + G + CA(EP*/P,Y - T)
C) Y = D(EP*/P,Y - T,I,G)
D) R = R* + (EP/E)
E) Y = D(EP*/P,Yᵈ,I,G)

Question

Quizplus · Accepted Answer

This equation is not related to equilibrium output, but rather to the determination of the exchange rate. The other equations represent different approaches to determining equilibrium output based on consumption, investment, government spending, net exports, and other variables.

Which of the Following Equations Does NOT State a Condition