An economy is described by the following equations: C = 1,800 + 0.8 (Y'T) I p = 1000 G = 2,000 NX = 200 T = 2,000 Y* = 9,000 The multiplier for this economy is 5. Find the effect on short-run equilibrium output of
a. An increase in government purchases by 50 from 2,000 to 2,050.
Instruction: Enter your response as an integer value. Short-run equilibrium output will to__________.
b. A decrease in tax collections from 2,000 to 1,950 (leaving government purchases at their original value of 2,000).
Instruction: Enter your response as an integer value. Short-run equilibrium output will to ___________.
c. A decrease in planned investment spending by 50 from 1,000 to 950 (leaving government purchases and taxes unchanged at their original values of 2,000).
Instruction: Enter your response as an integer value. Short-run equilibrium output will to ____________ .
An economy is described by the following equations: C = 1,800 + 0.8 (Y'T) I p = 1000 G = 2,000 NX = 200 T = 2,000 Y* = 9,000 The multiplier for this economy is 5. Find the effect on short-run equilibrium output of
a. An increase in government purchases by 50 from 2,000 to 2,050.
Instruction: Enter your response as an integer value. Short-run equilibrium output will to__________.
b. A decrease in tax collections from 2,000 to 1,950 (leaving government purchases at their original value of 2,000).
Instruction: Enter your response as an integer value. Short-run equilibrium output will to ___________.
c. A decrease in planned investment spending by 50 from 1,000 to 950 (leaving government purchases and taxes unchanged at their original values of 2,000).
Instruction: Enter your response as an integer value. Short-run equilibrium output will to ____________ .