Answer the questions below based on the following economy:

C= 3,500 + 0.25(Y-T)

I=I₀= 1,500G=G₀= 2,000X= 800IM= 300T=T₀= 2,500Y_p= 10,000

Note:Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places.

a)Find autonomous expenditure.

Autonomous Expenditure = $

0

b)Find the multiplier.

Multiplier =

0

c)Find short-run equilibrium output.

Short-run Equilibrium Output = $

0

d)Find the output gap.

Output Gap = $

0

e)By how much would autonomous expenditure have to change to eliminate the output gap?

(Select Change)

by $

0