Suppose the consumption function is C=150+0.5*Y, where C is consumption and Y is real GDP (both are in billions of $). Assuming that I=$100 billion, G=$150 billion, and NX=-$50 billion, how much is equilibrium real GDP in this economy?
Suppose the consumption function is C=150+0.5*Y, where C is consumption and Y is real GDP (both are in billions of $). Assuming that I=$100 billion, G=$150 billion, and NX=-$50 billion, how much is equilibrium real GDP in this economy?