An economy is described by the following equations: Cd = 1,600 + 0.8(Y – T) IP = 1000 G = 1,800 X = M = 0 T = 3,000 + 0.01YWhat is the short-run equilibrium level of output in this economy?Group of answer choices1.7600.52.7650.43.8420.54.9615.4

Equilibrium condition: Y= C+I+G+Xn

Answered: by the following equations:…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

1. An economy is described by the following equations:
                        Cd = 1,600 + 0.8(Y – T)

                        IP = 1000

                        G = 1,800

                        X = M = 0

                        T = 3,000 + 0.01Y

What is the short-run equilibrium level of output in this economy?

Group of answer choices

1.7600.5

2.7650.4

3.8420.5

4.9615.4

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions