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Assume the following model of the expenditure sector: C= 420 + (4/5) YD T= 50 I = 160 G = 180 NX= - 40 Calculate

Assume the following model of the expenditure sector:

C= 420 + (4/5) YD

T= 50

I = 160

G = 180

NX= - 40

  • Calculate the multiplier?
  • Calculated the Autonomous Spending?
  • Calculate the level of GDP?
  • If Government increases the G by $150, What is the equilibrium GDP?

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