Question
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
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