Question
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? 0.5 1 1.5 2 2) Consider the
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?
- 0.5
- 1
- 1.5
- 2
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?
- 600
- 700
- 800
- 1000
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.
- 650
- 750
- 950
- 1050
4) Consider the following economy: C=150+0.5(V-T), T=100, G=200, I=50. What is the equilibrium level of income?
- 600
- 700
- 800
- 1000
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