Questions 14 through 17 use the following information.

Consider the Keynesian model with the following parameters:

C = 200 + 0.7*DI;DI = 0.85Y + 80;G = 100;I = 300; X = 70;M = 120

1. Equilibrium output equals

Group of answer choices

1496.3

1556.4

1743.2

1018.5

Questions 14 through 17 use the following information.

Consider the Keynesian model with the following parameters:

C = 200 + 0.7*DI;DI = 0.85Y + 80;G = 100;I = 300; X = 70;M = 120

1. The budget surplus equals

Group of answer choices

cannot be determined from information given

44.4

68.4

124.4

Questions 14 through 17 use the following information.

Consider the Keynesian model with the following parameters:

C = 200 + 0.7*DI;DI = 0.85Y + 80;G = 100;I = 300; X = 70;M = 120

1. The multiplier equals

Group of answer choices

2.47

cannot be determined from information given

3.92

1.12

Questions 14 through 17 use the following information.

Consider the Keynesian model with the following parameters:

C = 200 + 0.7*DI;DI = 0.85Y + 80;G = 100;I = 300; X = 70;M = 120

1. If the government wants to increase output by 300, it could increase transfer payments by

Group of answer choices

255.0

178.5

121.5

173.6