Go to www.fgn.unisg.ch/eurmacro/Tutor/ keynesiancrss.html. Make sure the following settings are used: t = 0.25, G = 400;

Question:

Go to www.fgn.unisg.ch/eurmacro/Tutor/ keynesiancrss.html. Make sure the following settings are used: t = 0.25, G = 400; c = 0.8, and m = 0.0. Click on the memorize button. Note the value of equilibrium output. Now decrease G by 50. What is the value of equilibrium output? What is the implied multiplier? Compare your answer with the answer to Web Exercise Question 1.

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