Question

consider the simplest macro model with demand-determined output. the equations of the model are : C= 150+0.8YD, I = 400, G = 700, T = 0.2Y, X = 130, and IM = 0.14Y. Total autonomous expenditure in this month are?

Answer 1

aggregate expenditure =C₀+С *Y +I₀+G₀+X₀-IM

autonomous expenditure=C₀+I₀+G₀+X₀

autonomous expenditure = 150+400+700+130=1380

answer: 1380