C = 2,800 + 0.9y
I = 750
G = 1,200
NX = 150
Given the equations for C, I, G, and NX above, what is the equilibrium level of GDP (Y)?
What will be an ideal response?
Y = C + I + G + NX.
Y = 2,800 + 0.9Y + 750 + 1,200 +150.
Y = 4,900 + 0.9Y.
0.1Y = 4,900.
Y = 49,000.
Economics
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