Refer to the information. The equilibrium level of GDP in this economy is:
Answer the question on the basis of the following information for a private closed economy where C is consumption, Y is the gross domestic product, I g is gross investment, and i is the interest rate:
A. $240.
B. $300.
C. $360.
D. $400.
D. $400.
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The majority of small businesses
A) are privately owned. B) are managed by professional managers. C) raise funds in financial markets. D) are self-financing.
Suppose there are only two goods – Food (F) and Shelter (S). The demand equations for these two goods depend on their prices, pF and pS as follows:
DF (pF, pS) = 10 – 2pF – pS DS (pF, pS) = 10 – pF – 2pS The supply curves depend only on their own prices: SF (pF) = pF SS (pS) = 5pS Determine the equilibrium price and quantity of these goods.