Let us say the estimated equation for the economy’s aggregate demand is
Y = 400 – 15P + 8G
And the estimated equation for the economy’s aggregate supply is
Y = 5 + 11P – 10W
where Y is the country’s real GDP, P is the price level (GDP deflator), G is government purchases of goods and services, and W is the index of wages.
If G = 160 and W = 100, find the equilibrium real GDP and the price level in the economy.What is the simple multiplier in this economy? Give the number
400-15(P)+8(160)=5 + 11P – 10(100)
Y =400 – 15P + 8G=136.8
Y = 5 + 11P – 10W=136.68
Not sure what to do from here? Seems I need I,C but no way to find those values from numbers given to me.