Estimate the equilibrium gdp level

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Reference no: EM13892123

Use the following macroeconomic model to answer the questions from 1 through 12: You must show your work of estimation to obtain the credits.

C = 100 + 0.80Yd; C = consumption function; Yd = disposable income (Y-T)

T = 100; T = Tax revenue

I = 150; I = Investment

G = 200; G = Government expenditure

Yf = Full Employment RGDP (Potential RGDP) = 2600

1. Estimate the equilibrium GDP level (income).

I know that AD= C+I+G, does that have anything to do with Yf?

Reference no: EM13892123

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