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Assume a infinitely elastic short-run aggregate supply. Consider the following economy: . C=C+ 8/10 X YD . 1=1 . TR=TR . G=G . T=3/ 8

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Assume a infinitely elastic short-run aggregate supply. Consider the following economy: . C=C+ 8/10 X YD . 1=1 . TR=TR . G=G . T=3/ 8 X Y . X=0 . M=0 Potential GDP is 1000, while current GDP is 900. Assuming the mpc on changes in transfers is 1, what is the change in autonomous net transfers that will close the output gap? Round to two decimal places, do not enter the $ sign and remember the minus sign if appropriate. If your answer is -$6.125, enter -6.13

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