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Answer the questions below based on the following economy: C = 4,000 + 0.5( Y - T ) I = I 0 = 2,000 G
Answer the questions below based on the following economy:
C= 4,000 + 0.5(Y-T)
I=I0= 2,000
G=G0= 2,000
X= 200
IM= 100
T=T0= 2,000
Yp= 11,000
a)Find autonomous expenditure.
b)Find the multiplier.
c)Find short-run equilibrium output.
d)Find the output gap.
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