In the Keynesian cross model, assume that the consumption function is given by C = 20 + 0.8(Y- T). Planned investment is 200; government purchases and taxes are both 400. There is no foreign trade. An economist has claimed that the full employment level of output is 2,400. How much should the government expenditure or taxes rise or fall to achieve full employment?

Economics (MindTap Course List)
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Chapter10: Keynesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy
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In the Keynesian cross model, assume that the consumption function is given by

C = 20 + 0.8(Y- T).

Planned investment is 200; government purchases and taxes are both 400. There is no foreign trade.

An economist has claimed that the full employment level of output is 2,400. How much should the government expenditure or taxes rise or fall to achieve full employment? 

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