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# The change in equilibrium output

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1- You are given the following information on the macroeconomy:

Consumption: 200 + 0.75 Y

Investment: 100 + 0.10 Y

Government Spending: 500

Exports 100

Imports 50 + 0.25 Y

Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for an increase in autonomous consumption of \$50 million.

https://brainmass.com/economics/general-equilibrium/change-equilibrium-output-256500

#### Solution Preview

The equation for GDP is

Y = C + I + G + X - M

Given
Consumption: 200 + 0.75 Y
Investment: 100 + 0.10 Y
Government Spending: 500
Exports 100
Imports ...

#### Solution Summary

Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for an increase in autonomous consumption of \$50 million.

\$2.49