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1. Use the following values to answer question 1. C=200+.6(Y-T) T =200 G =200 I Planned = 120 a. Suppose that taxes increased from 200
1. Use the following values to answer question 1. C=200+.6(Y-T) T =200 G =200 I Planned = 120 a. Suppose that taxes increased from 200 to 240, while all other components of autonomous spending remained constant. What would be the change in equilibrium GDP? b. Suppose that both taxes and government spending increased from 200 to 240, while all other components of autonomous spending remained constant. What would be the change in equilibrium GDP? . The multiplier occurs in a series of steps or rounds. This is illustrated with a diagram on page 3 of the class notes \"The multiplier\". Assume that the first stage is that the government spends $100 on education. Given the consumption function above, what would be the amount of spending by computer store workers at restaurants
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