Assume that the consumpti

Assume that the consumpti

Assume that the consumption schedule for a private open economy is such that consumption is:Y = 50 + 0.9YAssume further that planned investmentand net exportsare independent of the level of real GDP and constant at= 30 and= 10. Recall also that, in equilibrium, the real output produced () is equal to aggregate expenditures:Y = C + I+ G + XRound your answers to the nearest whole number.a. What is the equilibrium level of income or real GDP for this economy?Equilibrium GDP (Y) = $.b. What happens to equilibriumifchanges to 10?Equilibrium GDP (= $.What does this outcome reveal about the size of the multiplier?Multiplier = .

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