Suppose  the  United  States  economy  is  repre- sented  by  the  following  equations: Z  =  C + I + G,  C  =  500 + 0.75YD,  T  =  600,  I  =  300, YD  = Y  − T ,  G = 2000   Given the  above  variables,  calculate  the  equilibrium level  of  output. assume that   government   spending   decreases   from 2000  to  1900.   What  is  the  new  equilibrium  level  of output?  How much does income change as a result of this event?  What is the multiplier for this economy?

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