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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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