Consider an economy characterized by the following equations: C = 500 + 0. 5Y - 2001 I 100 G - 200 where 'C' is desired consumption, I' is desired investment, 'G' is desired government purchase, 'i) is interest rate, and Y is national income. Suppose the interest rate is 5% (i.e. , "i = 0.051) . By how much should government change 'G' to keep the equilibrium national income unchanged after desired investment increases to 150 and interest rate increases to 10%? O Decrease G by 80. Increase G to 240. Decrease G to 160. Cannot be calculated due to incomplete information.In an economy in its long-run equilibrium, the long-run effect of a positive demand shock is : )a restoration of potential GDP as the AS curve shifts right. increase in rate of inflation. creation of a permanent recessionary output gap. decreases in productivity due to public investment.Consider an oil-exporting economy in its short-run equilibrium. Which of the following explains the immediate short-run effect of a decrease in international oil price on the Aggregate Supply (AS) of this economy, given that oil is an input to production? As the price of oil drops, Unit Cost of Production (UCP) of all firms in the economy will increase. This makes the firms to want to cut back production levels, because their UCP is now above the price of oil. This means in the aggregate AS level will decrease. As the price of oil drops, Unit Cost of Production (UCP) of all firms in the economy will decrease. This makes the firms to want to cut back production levels, because their UCP is now below the price of oil. This means in the aggregate the AS level will decrease. None of the choices.Suppose that the steel industry has a total output of $63.8 billion, purchases $49.0 billion in intermediate inputs, and has profits of about 10% of total output during a certain period. The value added (in billions) of the steel industry in that period is: O $8. 4 O $57 . 4 O $112 . 8 $14. 8