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Consider an economy with following data: C= 425 + .85YD T = 100 + .2 Y Ig = 1800 G = 2650 NX = -500
Consider an economy with following data:
C= 425 + .85YD
T = 100 + .2 Y
Ig = 1800
G = 2650
NX = -500
- Calculate the multiplier ?
- Calculated the Autonomous Spending (A)?
- Calculate the level of GDP (Y)?
- Calculate the level of GDP if government increases G and T by $50.
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