Suppose that the economy is characterized by the following behavioral equations: C= 120 + 0.90Y, |= 160 G= 170 T= 100 Equilibrium GDP (Y) = D (Round your response to two decimal places.) Disposable income (Yo) =D: (Round your response to two decimal places.) Consumption spending (C) =D (Round your response to two decimal places.)

The following table shows consumption (C), investment spending (I), and government purchases (G), for some hypothetical economy at several levels of income (reported in billions of dollars of real GDP). Assume that in this economy, income is taxed at a rate of 25%, base consumption is $50 billion, and that the marginal propensity to consume (MPC) is 0.667, or 2/3. Further assume that this economy is closed, that is, there is no international trade and so net exports are always equal to zero. Use the given information to fill in disposable income, consumption, and planned expenditures in the following table. Income: Real GDP Disposable (After Tax) Income C Ip G Planned Expenditures (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) 0 0 50 100 50   100     100 50   200     100 50   300     100 50   400     100 50   500     100 50…

Answer the given question with a proper explanation and step-by-step solution.  the value of a is 1334

Q2. Suppose the U.S. economy is represented by the following equations. Z=C+I+G C = 300+.5 YD T = 400 I = 200 YD = Y-T G = 1000 (a) Given the above variables, calculate the equilibrium level of output (Y). (b) Using the graph below, illustrate the equilibrium level of output for the economy. Aggregate Demand (Z) 450 (c) Now assume that consumer confidence increases causing an increase in autonomous consumption from 300 to 400. What is the new equilibrium level of output? (d) How much does income change as a result of this event? What is the multiplier for this economy? (e) Graphically illustrate (in the above graph) the effects of the change in autonomous consumption on the aggregate demand line and equilibrium Y. Clearly indicate in your graph the initial and final equilibrium levels of output. (f) Briefly explain why this increase in output is greater than the initial increase in autonomous consumption.