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Suppose that an economy is defined by the following equations: C = 3,500 + 0.8*Yd I = 5,000 T = 1,000 + 0.25*Y G =

Suppose that an economy is defined by the following equations:

C = 3,500 + 0.8*Yd I = 5,000 T = 1,000 + 0.25*Y G = 3,500

1-What is the government budget balance?

2-What is the government expenditures multiplier?

3-What is the lump-sum tax multiplier?

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