Suppose we had an imaginary economy where C = $5950 + 0.75Yd T = $7500 + 0.2Y I=$4675 G=$20000 EX-IM=0 '

14. The consumption function in terms of Y equals: C=$325 +0.6Y C=$375 + 0.6Y C= $5,950+0.75Y C= $11,575 + 0.6Y None of the above

15. The demand function in terms of Y equals: Demand=$36,250 +0.6Y Demand= $30,625 +0.75Y Demand = $25,050 +0.6Y Demand = $25,000 +0.6Y None of the above

16. The equilibrium output and tax revenue at the equilibrium would equal: $62,500; $20,000 $62,625; $20,025 $40,833.33; $15,666.67 $90,625; $25,625

17. At equilibrium output, the government is currently running a: Surplus Cyclical Deficit Structural Deficit Balanced Budget

18. If potential GDP is equal to $66,250, for the government to reach potential GDP, the government must Increase government spending by $1450 Increase government spending by $1500 Increase government spending by $10,166.67 Decrease government spending by $9750 None of the above

19. If potential GDP is equal to $66,250, for the government to reach potential GDP, the government must Decrease taxes by $2000 Decrease taxes by $1933.33 Decrease taxes by $13,555.56 Raise taxes by $13,000 None of the above