For the economy described in Problems 3 and 4, take as given that the multiplier for this

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For the economy described in Problems 3 and 4, take as given that the multiplier for this economy is 2.5. Find the effect on short-run equilibrium output of (LO4)

a. An increase in government purchases from 1,500 to 1,600.

b. A decrease in tax collections from 1,500 to 1,400 (leaving government purchases at their original value).

c. A decrease in planned investment spending from 900 to 800.

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Principles Of Macroeconomics

ISBN: 9781259414367

6th Edition

Authors: Robert Frank, Ben Bernanke, Kate Antonovics

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Question Posted: Nov 08, 2024 03:00 AM

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For the economy described in Problems 3 and 4, take as given that the multiplier for this

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Principles Of Macroeconomics

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