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Equilibrium level of real gdp and the value

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Assume the economy is in general equilibrium, where the Aggregate Demand intersects both the long run aggregate supply and short run aggregate supply at the same level of real GDP. Further assume that this general equilibrium, real GDP is the amount calculates using the following information:

C= 2500+.9 (Y-T)

T= 100

I= 200

G= 500

(X-M) =200

The equilibrium level of real GDP and the value of the multiplier, respectively, are:

A. $3,130 and 0.90

B. $3,120 and 0.10

C.$31,200 and 9.

D. $31,300 and 10.

Reference no: EM132506608

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