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a. 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 2, the new level of equilibrium GDP is $[ billion. d. Motak's deficit at this new level of equilibrium GDP is $| | billion.

a. 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 2, the new level of equilibrium GDP is $[ billion. d. Motak's deficit at this new level of equilibrium GDP is $| | billion.

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter30: Government Budgets And Fiscal Policy
Section: Chapter Questions
Problem 51P: A government starts off with a total debt of $3.5 billion. In year one, the government runs a...
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I know sir it's bartleby policy sove 3 part but i want solve all 4 part please solve sir i willl rate your answer.

Answer the questions below for the economy of Motak using the graph below. The Economy of Motak NTR G1 Tools 800 700 G2 600 500 400 300 200 100 200 400 600 800 1000 1200 1400 Real GDP a. 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 2, the new level of equilibrium GDP is $ billion, d. Motak's deficit at this new level of equilibrium GDP is $| |billion. Government spending /net taxes
Transcribed Image Text:Answer the questions below for the economy of Motak using the graph below. The Economy of Motak NTR G1 Tools 800 700 G2 600 500 400 300 200 100 200 400 600 800 1000 1200 1400 Real GDP a. 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 2, the new level of equilibrium GDP is $ billion, d. Motak's deficit at this new level of equilibrium GDP is $| |billion. Government spending /net taxes
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