I=1000

G=2000

mpc=0.6

1 ) Answer the following questions on short-run output.

An economy is described by the following equations: C =C+ mpc(Y - T), where C = 4,500, mpc = see above, I = see above, G = see above, NX = -100, T = 1, 900, TR = 0, u* = 5%, 7] = 2%