Use the following macroeconomic model to answer the questions from 1 through 12: You must show your work of estimation to obtain the credits.
C = 100 + 0.80Yd; C = consumption function; Yd = disposable income (Y-T)
T = 100; T = Tax revenue
I = 150; I = Investment
G = 200; G = Government expenditure
Yf = Full Employment RGDP (Potential RGDP) = 2600
1. Estimate the equilibrium GDP level (income).
I know that AD= C+I+G, does that have anything to do with Yf?