2 QUESTION 11For an IS/LM model of an economy with the following equations:C = 200 + 0.8Yd| = 220 – 25i= 240TR= 150T= .2YL= .5Y – 3i-M= 125The value of the fiscal policy multiplier with respect to income is0.220.844.22.78O O O O

Answered: model of an economy with the following…

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model of an economy with the following equa Yd he fiscal policy multiplier with respect to incon

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 13SCQ: What is the main advantage of automatic stabilizers over discretionary fiscal policy?

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