Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. Answer the questions below for the economy of Motak using the graph below.Government spending / net taxes400350300250200150100500The Economy of Motak200 400 600 800 1000 1200 1400 1600Real GDPNTRG1ToolsG₂a. If GDP is $800 and government spending is G₁, the size of Motak's budget deficit is $b. If government spending is decreased by the size of the deficit in part (a), draw the new curve labelled G₂ in the graphing areaabove.c. Suppose the multiplier has a value of 2, the new level of equilibrium GDP is $d. Motak's deficit at this new level of equilibrium GDP is $billion.billion.billion.

The current level of GDP is provided as $800 and the government spending is at the point of $350…

Answered: a. If GDP is $800 and government…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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