Find equilibrium GDP using the following macroeconomic model: A) C = 1,000 + 0.8Y Consumption function B) I = 500 Investment function C) G = 600 Government spending function D) NX = -100 Net export function E) Y = C + I + G + NX Equilibrium condition

Answer: $10,000

Explanation:

Equilibrium GDP is found using this equation:

Y = C + I + G + NX

Inputing the values provided in the question into the above equation;

Y = 1000 + 0.8Y + 500 + 600 - 100

Y = 2000 + 0.8Y

Collecting like terms

Y - 0.8Y = 2000

0.2Y = 2000

Y = $10,000