If GDP is $800 and government spending is G1, the size of Motak's budget deficit is $ billion. b. If government spending is decreased by the size of the deficit in part (a), draw the new curve labelled G2 in the graphing area above. c. Suppose the multiplier has a value of 3, the new level of equilibrium GDP is $ billion. d. Motak's deficit at this new level of equilibrium GDP is $ billion.
If GDP is $800 and government spending is G1, the size of Motak's budget deficit is $ billion. b. If government spending is decreased by the size of the deficit in part (a), draw the new curve labelled G2 in the graphing area above. c. Suppose the multiplier has a value of 3, the new level of equilibrium GDP is $ billion. d. Motak's deficit at this new level of equilibrium GDP is $ billion.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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a. If
b. If government spending is decreased by the size of the deficit in part (a), draw the new curve labelled G2 in the graphing area above.
c. Suppose the multiplier has a value of 3, the new level of equilibrium GDP is $ billion.
d. Motak's deficit at this new level of equilibrium GDP is $ billion.
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