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These equations represent the AE model of Country X and correspond with Question #3 C =...

These equations represent the AE model of Country X and correspond with Question #3

C = 0.75(DI) + 3000 I = 3000
G = 2000
X = 2000

M = 1000 T = 4000 DI = Y – T

C = consumption expenditure, DI = disposable income I = autonomous investment
G = government expenditure
X = exports

M = imports
T = tax revenues Y = real GDP

3. What is the equilibrium real GDP (Y*) in this economy?

a. 12,000
b. 50,000
c. 24,00

d. 36,000
e. none of the above

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Answer #1

In Equilibrium y = C+I+ 6 + x - - - Зооо-+ 6. 75 (у- т) + 3000+2000 + 2 ооо — 1 с Yz Gooo + 0.75 (у - Чооо) Yz »- 9 ooo o-sycomplete answer is given in picture. Give it a thumbs up Thank you

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