Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer the questions below based on the following economy: C = 2,500 + 0.5( Y - T ) I = I 0 = 1,000 G

Answer the questions below based on the following economy:

C= 2,500 + 0.5(Y-T)

I=I0= 1,000 G=G0= 1,500 X= 600 IM= 400 T=T0= 1,000 Yp= 11,000

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.

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?

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 American Economy

Authors: Walter Greason, William Gorman

1st Edition

1524902675, 9781524902674

More Books

Students also viewed these Economics questions

Question

3 What are the aims of appraisal?

Answered: 1 week ago

Question

7 Compare and contrast evaluative and developmental appraisal.

Answered: 1 week ago