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Consider an economy described by the following data: C = 3.25trillion I =1.3trillion G = 3.5trillion T = 3.0trillion NX = 1.0trillion f =1 mpc

Consider an economy described by the following data:

C = 3.25trillion

I =1.3trillion G = 3.5trillion T = 3.0trillion

NX = 1.0trillion

f =1 mpc = 0.75 d = .3 x = 0.1

9) Given r = 2%, if the taxes increase to 4 trillion, the equilibrium output is ______________________

10) Given r = 2%, if the level of financial friction increases to 2, the equilibrium output is ______________________

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