Answer the following questions, which relate to the aggregate expenditures model: LO5

a. If C a is $100, I g is $50, X n is 2$10, and G is $30, what is the economy’s equilibrium GDP?

b. If real GDP in an economy is currently $200, C a is $100, I g is $50, X n is 2$10, and G is $30, will the economy’s real GDP rise, fall, or stay the same?

c. Suppose that full-employment (and full-capacity) output in an economy is $200. If C a is $150, I g is $50, X n is 2$10, and G is $30, what will be the macroeconomic result?