Macroeconomic model

/in /by

Use the following macroeconomic model to answer the questions from 17 through 27:

C = 100 + 0.80Yd; C = consumption function; Yd (Y-T) = disposable income

I = 120; I = Investment

G = 150; G = Government expenditure

T = 50; T = Tax revenue

X = 30; X = Export

M = 20; M = Import

Also assume that Yf = Full employment GDP (Potential GDP) = 2,100

In addition to increase of export value in statement 25 above, if the import value decreases to 10 for the same reason, other things remaining the same, then the answer to Question 17 would be —-

Group of answer choices

1,880

1,650

1,800

1,850