Consider the following macro-economic model: . Consumer Spending: C(Y-T) = 900 + .6(Y-T) .Investment Spending: 1 = 50 B Government Spending: G = 700 .Net Exports: EX- IM = -275 ■ Taxes: T = .25Y A. The Keynesian Equilibrium for this economy is without a dollar sign and without a comma. Record your answer B. Suppose government spending increases by 110 units. The new Keynesian Equilibrium is Record your answer without a dollar sign and without a comma. C. The size of the government multiplier in this case is nearest 2 decimal points). D. The government deficit is originally It increases to _ Record your answer without a dollar sign. (round to the

Consider the following macro-economic model: . Consumer Spending: C(Y-T) = 900 + .6(Y-T) .Investment Spending: 1 = 50 B Government Spending: G = 700 .Net Exports: EX- IM = -275 ■ Taxes: T = .25Y A. The Keynesian Equilibrium for this economy is without a dollar sign and without a comma. Record your answer B. Suppose government spending increases by 110 units. The new Keynesian Equilibrium is Record your answer without a dollar sign and without a comma. C. The size of the government multiplier in this case is nearest 2 decimal points). D. The government deficit is originally It increases to _ Record your answer without a dollar sign. (round to the

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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