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I need help answering all these questions! please. For the graph you will need to plot: investment effect on aggregate demand, investment effect on equilibrium

I need help answering all these questions! please.

For the graph you will need to plot: investment effect on aggregate demand, investment effect on equilibrium (point), government action effect on aggregate demand, and government action effect on equilibrium (point).

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Let the Canadian economy be described below. You are an economist in the Department of Finance, Ottawa. C = 70 + 0.8Yd (Yd is disposable income) I = 380 (Investment spending) G = 750 (Govemment purchases) NT = 0.3Y (Net taxes) = 50 (Exports are constant) IM = 0.06Y (Imports depend positively on our own Y) a) Calculate the equilibrium Y. E b) Find the autonomous multiplier. [Autonomous multiplier = c) Find the government budget balance BB, given your Y in (a). d) Oil prices have been dropping recently. Lower crude oil prices translate to lower costs for gasoline, plastic and many products. Suppose the lower oil prices translate to our investment spending rising from 380 to 880 due to a stronger investment condence. Find the new Y. e) Find the BB as a result of the rise in investment spending. f) Is this change in BB due to an increase in government spending, i.e., is the Canadian government to be blamed? 0 Yes 0 No 9) Suppose the government wants to push the economy back to the Y level in (a) but with the investment spending still at | = 880. Find the new G necessary. @ h) Also nd new BB with the government spending in (g) and the investment spending = 880. i) Without further calculations, use the AD-AS diagram to demonstrate the effect of the government's action in (9). Be sure to include the initial rise in investment spending from (d) in your diagram. 75015002250300037504500 Float GDP

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