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Answer the questions below based on the following economy: C = 4,500 + 0.25( Y - T ) I = I 0 = 2,000 G

Answer the questions below based on the following economy:

C= 4,500 + 0.25(Y-T)

I=I0= 2,000

G=G0= 2,500

X= 800

IM= 400

T=T0= 2,000

Yp= 12,000

a)Find autonomous expenditure.

b)Find the multiplier.

c)Find short-run equilibrium output.

d)Find the output gap.

e)By how much would autonomous expenditure have to change to eliminate the output gap? and will it increase or decrease?

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