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How do I do these two 1 For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. By how
How do I do these two
1 For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. By how much would autonomous expenditure have to change to eliminate the output gap? -2,000 + 0.9 (y- TP2,000 G2,500 NX200 = 2,000 Y48, 000 nstructions: Enter your responses as whole numbers. Autonomous expenditure:4900 Multiplier: Short-run equilibrium output 49000 Output gap: Autonomous expenditure would need to decreaseby to eliminate the output gap For the economy described below: 2 2, 600 0.8(- 10,000r 2,00010,000r 1,800 -3,000 a. Suppose that potential output Y"equals 12,000. What real interest rate should the Fed set to bring the economy to full employment? You may take as a given that the multiplier for this economy is 5. nstructions: Enter all your responses as whole numbers. Real rate of interest E % b. Suppose that potential output Y equals 9,000. What real interest rate should the Fed set to bring the economy to full employment? You may take as given tat the multiplier for this economy is 5. Real rate of interest 1-1% C. Show that the real interest rate determined in part a sets national saving equal to planned investment when the economy is at potential output. This result shows that the real interest rate must be consistent with equilibrium in the market for saving when the economy is at full employment. Planned investment iP National saving S-C
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