Suppose a closed economy with no government spending or taxing initially. Suppose also that intended investment is equal to 200 and the aggregate consumption function is given by C 300 +0.75Y. And suppose that, if at full employment, the economy would produce an output and income of 3100 By how much would the government need to raise spending (G) to bring the economy to full employment? (round your answer to the nearest whole value) Your Answer: Answer

Suppose a closed economy with no government spending or taxing initially. Suppose also that intended investment is equal to 200 and the aggregate consumption function is given by C 300 +0.75Y. And suppose that, if at full employment, the economy would produce an output and income of 3100 By how much would the government need to raise spending (G) to bring the economy to full employment? (round your answer to the nearest whole value) Your Answer: Answer

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 7PA

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