Home › CBSE Class 12 (Arts) › Economics › Open Economy Macroeconomics › Given C = 40 + 0.8(Y - T), T = 50, I = 60, G = 4…
Given C = 40 + 0.8(Y - T), T = 50, I = 60, G = 40, X = 90, M = 50 + 0.05Y, find Y.
A480
B620
C700
D560
Answer & Solution
Correct answer: D. 560
Y = 0.8Y + 60 + 40 + 90 - 50 - 0.05Y gives 0.25Y = 140, so Y = 560.
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