Given the following consumption function, C = 400 + 0.75YD, where C= consumption expenditure, YD = disposable income, Investment= $1200, Government spending = $1600,Exports = $500, Imports = $600, Taxes = $1200 and Potential GDP = $9000 Choose corrcct option a) Aactual output is less than potential output b) actual output is zero c) actual output is equal to potential output d) actual output is higher than potential output

Given the following consumption function, C = 400 + 0.75YD, where C= consumption expenditure, YD = disposable income, Investment= $1200, Government spending = $1600,Exports = $500, Imports = $600, Taxes = $1200 and Potential GDP = $9000 Choose corrcct option a) Aactual output is less than potential output b) actual output is zero c) actual output is equal to potential output d) actual output is higher than potential output

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter10: Income And Expenditures Equilibrium

Section: Chapter Questions

Problem 1E

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