Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer the questions below based on the following economy: C = 3,000 + 0.25( Y - T ) I = I 0 = 1,000 G

Answer the questions below based on the following economy:

C= 3,000 + 0.25(Y-T)

I=I0= 1,000

G=G0= 2,500X= 900

IM= 400

T=T0= 2,500

Yp= 13,000

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?

(Increase or decrease) by $0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Levelling What's Next After Globalization

Authors: Michael O'Sullivan

1st Edition

1541724089, 9781541724082

More Books

Students also viewed these Economics questions

Question

What is process design?

Answered: 1 week ago