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Consider the following macro - economic model: Consumer Spending: C ( Y - T ) = 7 0 0 + . 9 ( Y -
Consider the following macroeconomic model:
Consumer Spending: CYTYT
Investment Spending: I
Government Spending: G
Net Exports: EX IM
Taxes: T Y
A The Keynesian Equilibrium for this economy is
Record your answer without a dollar sign and without a comma.
B Suppose government spending increases by units. The new Keynesian Equilibrium is
Record your answer without a dollar sign and without a comma.
C The size of the government multiplier in this case is
round to the nearest decimal points
D The government deficit is originally
It increases to
Record your answer without a dollar sign.
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