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Find equilibrium GDP using the following macroeconomic​ model: A) C ​= ​1,000 + 0.8Y Consumption function B) I ​= 500 Investment function C) G ​= 600 Government spending function D) NX ​= ​-100 Net export function E) Y ​= C ​+ I​ + G​ + NX Equilibrium condition

Answer :

Answer: $10,000

Explanation:

Equilibrium GDP is found using this equation:

Y ​= C ​+ I​ + G​ + NX

Inputing the values provided in the question into the above equation;

Y = 1000 + 0.8Y + 500 + 600 - 100

Y = 2000 + 0.8Y

Collecting like terms

Y - 0.8Y = 2000

0.2Y = 2000

Y = $10,000

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