C = 250 + 0.4Yd = 250 + 0.4(Y – T) I = 200 G = 500 T = 250 Consider the following cases. Solve for the values and round-off your answers, if necessary, to the nearest two- decimal places. Note that these are all isolated cases from each other • If Investment increases by 200, equilibrium output would increase by • If Government Spending increases by 200, equilibrium output would increase by • If Tax increases by 200, equilibrium output would decrease by o If Government Spending and Tax both simultaneously increased by 200, equilibrium output would increase by

C = 250 + 0.4Yd = 250 + 0.4(Y – T) I = 200 G = 500 T = 250 Consider the following cases. Solve for the values and round-off your answers, if necessary, to the nearest two- decimal places. Note that these are all isolated cases from each other • If Investment increases by 200, equilibrium output would increase by • If Government Spending increases by 200, equilibrium output would increase by • If Tax increases by 200, equilibrium output would decrease by o If Government Spending and Tax both simultaneously increased by 200, equilibrium output would increase by

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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