(LO4 , LO5) a. Find a numerical equation relating planned aggregate expenditure to output. b. Construct a...

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(LO4 , LO5)

a. Find a numerical equation relating planned aggregate expenditure to output.

b. Construct a table to find the value of short-run equilibrium output. ( Hint: The economy is fairly close to full employment.)

c. By how much would government purchases have to change in order to eliminate any output gap? By how much would taxes have to change? Show the effects of these fiscal policy changes in a Keynesian-cross diagram.

d. Repeat part c assuming that Y * 5 630.

e. Show your results for parts b through d on a Keynesian-cross diagram.

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Principles Of Macroeconomics

ISBN: 9780415568685

2nd Brief Edition

Authors: Robert Frank, Ben Bernanke

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Question Posted: Nov 11, 2024 06:01 AM

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(LO4 , LO5) a. Find a numerical equation relating planned aggregate expenditure to output. b. Construct a...

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Principles Of Macroeconomics

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