Assume the following model of the economy, with the price level fixed at 1.0:

C = 400 + 0.8(Y - T)T = 1,000

I = 800 - 10r G = 800

Y = C + I + G M^s/P = M^d/P = 0.2Y - 40r

M^s = 600

Use the IS-LM model to determine thefollowing short-run equilibrium values:

a. Output, Y = Blank 1___

b. Real interest rate, r = Blank 2____

c. Consumption, C = Blank 3__

d. Investment, I = Blank 4_______

e. National Saving, S = Blank 5____

Now assume that G increases by 50.

f. By how much will Y increase in short-run equilibrium? Blank 6______

g. What is the government-purchases multiplier (Y divided by G)? Blank 7________

Note: all answers are integer values.