Suppose a closed economy with no government spending or taxing is capable of producing an output of $1250 at full employment. Suppose also that autonomous consumption is $150, intended investment is $180, and the mpc is 0.75.

What is the multiplier for this economy?

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Question 8 (1 point)

Suppose a closed economy with no government spending or taxing is capable of producing an output of $1850 at full employment. Suppose also that autonomous consumption is $70, intended investment is $90, and the mpc is 0.75.

What is the value of output (Y) in equilibrium?

Your Answer:

Question 9 (1 point)

Suppose a closed economy with no government spending or taxing is capable of producing an output of $2100 at full employment. Suppose also that autonomous consumption is $170, intended investment is $140, and the mpc is 0.50.

How much additional autonomous spending (for instance, from the government) is needed to move the economy to full employment?

Your Answer: