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Can you help with parts ii. and a-e of iii? Can you also confirm that the graph is correct. Thank you!! ii. What is the
Can you help with parts ii. and a-e of iii? Can you also confirm that the graph is correct. Thank you!!
ii. What is the equilibrium RGDP? iii. Assume that the government of Southern decides to increase expenditure to $150 billion. a. What is the new equilibrium RGDP? b. What is the Government expenditure multiplier? Question 2 c. Why might the Southern government increase expenditure to $150 billion? Assume the following applies to the Southern economy. d. Instead of increasing expenditure, what could the Southern government have done to achieve the same GDP as in iii.a.? Explain using the figures you generated. 1. Autonomous Tax ( T) is $100 billion. 2. Autonomous consumption is $200 billion. 3. Marginal propensity to consume (mpc) is .8 . 4. Planned investment expenditure (I) is $50 billion 5. Government spending (G) is $100 billion 6. Net exports (NX) are $50 billion. AE= Aggregate Demand or Aggregate Expenditure Y=RGDP i. Complete the table below using excelStep by Step Solution
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