1)Consider the following economy: C=150+0.5(Y-T), T=100, G=200, I=50. What is the multiplier for government expenditure of the economy?

2) Consider the following economy: C=150+0.5(Y-T), T=100, G=200, I=50. If taxes decrease from 100 to 0, what will be the new equilibrium level of income?

3) Consider the following economy: C=150+0.5(Y-T), T=100, G=200, I=50. How much should government expenditure increase for the equilibrium level of income to increase to 2000.

4) Consider the following economy: C=150+0.5(V-T), T=100, G=200, I=50. What is the equilibrium level of income?

5) Consider the following economy: C=150+0.5(Y-T), T=100, G=200, I=50. If G, government expenditure increased from 200 to 300 what would be the new equilibrium level of income, Y

6) Consider the following economy: C=150+0.5(Y-T), T=100, G=200, I=50. What is the tax multiplier of the economy?

7) In recessions, tax revenues collected by government tend to____, automatic stabilizers (unemployment benefits...) tend to______ and budget deficit (G-T) tends to_______

8)Consider the following economy: C=150+0.5(Y-T), T=100, G=200, I=50. If the production is at level Y=800, which of the following is correct?