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9. Consider a country's aggregate demand which comprises four sectors (i.e., households, rms, government, and trade). The following equation represents the country's equilibrium output and
9. Consider a country's aggregate demand which comprises four sectors (i.e., households, rms, government, and trade). The following equation represents the country's equilibrium output and income: Y*=1 (co+I(r)+G+X) 1c1(1t)+m where the multiplier is equal to 1.7. Assume that post-pandemic the country's autonomous consumption :20 increases by $100m, other things remaining the same. (i) How would this change impact output and income? Provide reasoning for your answer. (ii) What should the government do to cool down a heated economy
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