lilcwgrl4264 lilcwgrl4264

27-10-2022
Business

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suppose an economy is initially in equilibrium when gdp equals $17 trillion. now suppose investment spending decreases by $0.4 trillion and that the economy's multiplier is 2. what is the new equilibrium level of gdp? provide your answer in dollars measured in trillions round to two decimal places.

Answer :

RajeevKumarBag RajeevKumarBag

01-11-2022

When the whole available supply and total available demand are equal to one another, the level of national income is said to be at equilibrium.

How do you determine the new equilibrium GDP level?

E=C+I+G+NX [Aggregate demand is the sum of consumption, investment, purchases made on behalf of the government, and net exports.] When things are balanced, total expenditure equals total revenue or total output. Determine the GDP level that will stabilize the economy (Y*).

In the income expenditure model, what is the GDP equilibrium level?

In the income-expenditure model, the equilibrium occurs at the GDP level where total spending equals gross domestic product (or GDP).

What is the equilibrium level formula?

The equation for the equilibrium level of income is the case where the aggregate supply (AS) and the aggregate demand (AD), where AS = AD, are equal.

Learn more about equilibrium here:

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