Number 55: Suppose the Aggregate Demand equation is:C = [ 600 + .75(Ye - 400), I = 400, G = 600

Equilibrium Ye =

$5200

$7350

$6800

$5250

none of the above

Number 56:Based upon your previous answer and the previous equation, Consumption (C) at equilibrium =

$4000

$3800

$5200

$4200

none of the above

Number 57: Based upon the preceding equation, the government budget is

There is a budget deficit of $200, and the Treasury will issue $200 in T-Bills

There is a budget surplus of $200 so there is no debt

The US Treasury will issue $400 in T-Bills to cover the deficit

the Federal Reserve will issue $400 in T-Bills to cover the deficit

the government is operating with a budget deficit of $400 and will issue T-Bills