Question: You are given the following information on the various sectors of the economy. (numbers in billions)

C = 100 + 0.75Y G = 500 M = 100 + 0.1Y

I = 200 + 0.2Y X = 250

a. Derive the gross domestic product (GDP) function from the information above. Show your work.

(4 pts)

GDP = ___________________________________________________________________

b. What is the dollar value of GDP given Y = $800 billion? Show your work. (4 pts)