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18. Assume the same economy described in question one above. All gures are in billions of dollars. C = 2500 r =1200 E? = 400
18. Assume the same economy described in question one above. All gures are in billions of dollars. C = 2500 r =1200 E? = 400 I =1700 E = 2400 EY=1400 EH =1490 m= m=0l t=0.2 A. By how much would the real GDP (Y) change if both autonomous government spending and autonomous taxes were increased by $200 h. each? Note that an increase in government spending is nanced entirely by an equal increase in autonomous taxes. (SHOW WORK) B. What would be the impact on real GDP (Y) if a depreciation of the domestic currency leads to higher autonomous exports of $1'}'5 b. (AEX), and to lower autonomous imports of 590 1). (AIM)? (SHOW WORK)
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