Question

Given the equations for c​, i​, g​, and nx​ below, what is the equilibrium level of​ gdp? c​ = 2,000​ + 0.9y i​ = 2,500 g ​= 3,000 nx​ = 400

Answer 1

The Equilibrium Level of GDP is 79,000.

Solution:
E = C+I+G+NX
E = Y
Y = (2,000 + 0.9y) + 2500 + 3000 + 400
Y = 0.9y + 7900
Y-.09y = 0.9y-0.9y + 7900
0.1y = 7900
Y = 7900/0.1
Y = 79,000