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(5 points) Suppose that the components of planned aggregate expenditure in a 4-sector economy are: C = + c (Y - T), T = tY,
(5 points) Suppose that the components of planned aggregate expenditure in a 4-sector economy are: C = + c (Y - T), T = tY, with exogenous components IP, G, and NX. Where, Suppose = 500, I = 1500, G = 2000, X = 0, M =0, c = 0.8, and t = 0.25. If Potential Output, Y*=12000, what should be the new value of t to close the output gap if everything else remains the same
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