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Write out the national income

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Reference no: EM132268310

Consider the following data for a Foggyland economy:

Y = C + I + G + NX

C = 1000 + 0.60Y

I = 1200

G = 1500

NX = -400

Use the data to calculate the following: Show the formula you used to receive full credit.

a. Write out the National Income/GDP equation numerically.

b. What is the equilibrium level of GDP?

c. What is the level of the consumption function?

d. What is the autonomous expenditure multiplier?

e. Suppose that business confidence increases by 100. What happens to the equilibrium level of GDP? Why?

Reference no: EM132268310

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