ECON 102 Quiz: ECON 102 UW Madison Quiz4Summer2015
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Please write your answers neatly and legibly: use the simple keynesian model developed in class to analyze the economy described by the following information. Tr = 0 (there are no transfers in this economy) Yfe = y full employment = 150: (1 point) examine this data. Explain your answer. (1 point) examine this data. Explain your answer: (1 point) determine the equilibrium level of gdp for this economy. Show any formulas you use and show your work to get full credit for this answer: (2 points) consider your answer in (c) and compare it to yfe. 1 (1 point) suppose the government decides to enact fiscal policy in order to reach full employment. Suppose the government enacts a change in government spending to reach this goal. Calculate what this change in government spending must be in order for this economy to reach full employment. Show your work: consider the ad/as model of the aggregate economy developed in class.