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Given: c= 0.75 y = $40 w = $32 I = $3,600m G= $3,600m Labor force = 800m hours a) N* = ? b) Y*
Given:
c= 0.75
y = $40
w = $32
I = $3,600m
G= $3,600m
Labor force = 800m hours
a) N* = ?
b) Y* = ?
Suppose government decides to not engage in deficit spending (B= 0)
c) What's the new equilibrium level of employment?
d) What's the new equilibrium level of output?
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