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Question 9 Consider the Keynesian-cross model in a closed economy. This model will be used for all remaining questions. Z : (' W [+ (1'
Question 9 Consider the Keynesian-cross model in a closed economy. This model will be used for all remaining questions. Z : (' W [+ (1' (1) Planned aggregate expenditure (7' : 5 W Olb ('2) Consumption function I : 4 (3) Planned investment C : G ( 1) Government expenditure YD : Y T (:3) Disposable income T : 2 l 0.er (6) Net tax function Y = Z (7) Equilibrium condition Solve for the equilibrium value of the government expenditure multiplier. (Round your answer to 3 decimal places.) Selected Answer: 2.222 Question 10 Consider the model in Question 9. Calculate Equilibrium Output (Y'). (Round your answer to 3 decimal places) Selected Answer: 21.429 Question 11 Consider the model in Question 9. Calculate the change to planned investment (Al) required increase equilibrium output by AY=4. (Round your answer to 3 decimal places)
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