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Clear workings please 1.The Short Run (a) (10 points) Suppose our economy is represented by the following equations: 2 = C + | + G,

Clear workings please

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1.The Short Run (a) (10 points) Suppose our economy is represented by the following equations: 2 = C + | + G, C = 400 + 0.4YD, T: 400, | = 200 + 0.2Y, YD = Y T, G = 600. Calculate the multiplier of autonomous spending and the equilibrium output of this economy. 2 using an lS-LM model with an interest rate targeting the central bank the implications of fiscal expansion. What are the effects on interest rate, output, consumption and investment? )

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