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

Equation D does not relate to equilibrium output, but rather to the determination of exchange rates. The other four equations all include variables or conditions necessary for determining equilibrium output.

Which of the Following Equations Does NOT State a Condition