Consider the following closed economy, which we shall call Gazzalestan.C=50+4/5 X YDI=2400G=1100TR=40T=¹/2 XYIf there is a $120 increase in autonomous government expenditures, what is the change ingovernment savings (assuming no change in the price level)?Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter6.11. If your answer is $6.115, enter 6.12. Do not forgot to enter the negative sign, if appropriate.For inquiring minds B is the currency symbol for Bitcoin, which is the official currency ofGazzalestan.

Given information: C = 50 + (4/5)*YD -------------> Consumption function I = 2400…

Consider the following closed economy, which we shall call Gazzalestan. C=50+4/5 X YD. I=2400 G=1100 TR=40 T=¹/2 X Y If there is a $120 increase in autonomous government expenditures, what is the change in government savings (assuming no change in the price level)?

Consider the following closed economy, which we shall call Gazzalestan. C=50+4/5 X YD. I=2400 G=1100 TR=40 T=¹/2 X Y If there is a $120 increase in autonomous government expenditures, what is the change in government savings (assuming no change in the price level)?

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter13: Money And The Banking System

Section: Chapter Questions

Problem 10CQ

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Question

Consider the following closed economy, which we shall call Gazzalestan.
C=50+4/5 X YD
I=2400
G=1100
TR=40
T=¹/2 XY
If there is a $120 increase in autonomous government expenditures, what is the change in
government savings (assuming no change in the price level)?
Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter
6.11. If your answer is $6.115, enter 6.12. Do not forgot to enter the negative sign, if appropriate.
For inquiring minds B is the currency symbol for Bitcoin, which is the official currency of
Gazzalestan.

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Government saving (When G is at its initial point, i.e., G = 1100)

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