Consider a macroeconomy where the current population is 0.8 million people. Gross domestic private investment is constant $2000 million while consumer expenditure is described by the equation: C = 540 +0.8DI. The government is fairly active, with a total expenditure of $3500 million and net taxes of $2550 million. Further investigation of the macroeconomy reveals that imports are constant at $3000 million while exports are constant at $2000 million. Currently, the overall price level (GDP deflator) is 118 and the potental GDP level is $13.5 billion. (Question 1 of 7) What is the current equilibrium level of real GDP? (report your answer at 2 decimal places and in millions of dollars)

Consider a macroeconomy where the current population is 0.8 million people. Gross domestic private investment is constant $2000 million while consumer expenditure is described by the equation: C = 540 +0.8DI. The government is fairly active, with a total expenditure of $3500 million and net taxes of $2550 million. Further investigation of the macroeconomy reveals that imports are constant at $3000 million while exports are constant at $2000 million. Currently, the overall price level (GDP deflator) is 118 and the potental GDP level is $13.5 billion. (Question 1 of 7) What is the current equilibrium level of real GDP? (report your answer at 2 decimal places and in millions of dollars)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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