10. Answer the following questions, which relate to the aggregate expenditures model: LO31.8

a. If Ca is $100, Ig is $50, Xn is −$10, and G is $30, what is the economy’s equilibrium GDP?

b. If real GDP in an economy is currently $200, Ca is $100, Ig is $50, Xn is −$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 Ca is $150, Ig is $50, Xn is −$10, and G is $30, what will be the macroeconomic result?