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Homework answers / question archive / C = 10,I = 0,G = 20,NX = −10,MPC = 1/2, then equilibrium GDP is (a) 20 (b) 10 (c) 40 (d) 80
C = 10,I = 0,G = 20,NX = −10,MPC = 1/2, then equilibrium GDP is
(a) 20 (b) 10 (c) 40 (d) 80
Computation of Equilibrium GDP:
Equilibrium GDP = C+I+G+NX
= 10+0+20+(-10)
= 30+(-10)
Equilibrium GDP = 20
So, the correct option is A "20".
