Q 71

In Macroland,the components of planned aggregate expenditure are given by: C = 100 + 0.9(Y - T)- 500r I = 150 - 1,000r G = 200 NX = 50 If net taxes equal 100 and the central bank sets the interest rate to equal 0.06 (6%),what is short-run equilibrium output? A) 3,200. B) 3,350. C) 3,500. D) 3,650. E) 3,800.

Multiple Choice