The equations for C, I, G, and Nx are all given below. What is the equilibrium level of GDP? C = 1252 + 0.7*Y
I = 870
G = 927
NX = 388
A)5232
B)4910
C)2022
D)8870
E)7283

Question

Quizplus · Accepted Answer

The equilibrium level of GDP (Y) is found by summing the components of aggregate expenditure: C + I + G + Nx. Substituting the given equations and values into Y = C + I + G + Nx gives Y = 1252 + 0.7Y + 870 + 927 + 388. Solving for Y, we get Y = 5232.

The Equations for C, I, G, and Nx Are All