the following equations describe consumption, investment, government spending, taxes, and net exports in the…

the following equations describe consumption, investment, government spending, taxes, and net exports in the country of economika. c = 100 + 0.80(y - t), i = 700, g = 450, t = 450, x = 150. in economika, equilibrium gdp is equal to $ (round your asnwer the nearest dollar).

the following equations describe consumption, investment, government spending, taxes, and net exports in the country of economika. c = 100 + 0.80(y - t), i = 700, g = 450, t = 450, x = 150. in economika, equilibrium gdp is equal to $ (round your asnwer the nearest dollar).

Answer

Explanation:

Step1: Recall GDP formula

In a closed - economy with government and foreign trade, $Y = C+I + G+X$. Substitute $C = 100+0.80(Y - T)$ into the equation. So $Y=100 + 0.80(Y - T)+I + G+X$.

Step2: Plug in given values

Given $I = 700$, $G = 450$, $T = 450$, $X = 150$. Then $Y=100+0.80(Y - 450)+700 + 450+150$.

Step3: Expand and simplify

First, expand $0.80(Y - 450)=0.8Y-360$. So $Y=100 + 0.8Y-360+700 + 450+150$. Combine like - terms: $Y=0.8Y+(100-360 + 700+450+150)$. $Y=0.8Y + 1040$.

Step4: Solve for Y

Subtract $0.8Y$ from both sides: $Y-0.8Y=1040$. $0.2Y = 1040$. Then $Y=\frac{1040}{0.2}=5200$.

Answer:

$5200$