Suppose that full-employment and full-capacity output in, Ask an Expert

Economics

Answer the following questions, which relate to the aggregate expenditures model:

a. If Ca is $100, Ig is $50, Xn is -$10 , and G is $30, what is the economy's equilibrium GDP?

b If real GDP in an economy is currently $200, Ca is $100, I g is $50, Xn is -$10 , and G is $30, will the economy's real GDP rise, fall, or stay the same?

C. Suppose that full-employment (and full-capacity) output in an economy is $200. If Ca is $150, lg is $50, Xn is -$10, and G is $30, what will be the macroeconomic result?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9446770

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