Suppose a closed economy with no government spending or taxing initially. Suppose also that intended investment is equal to 200 and the aggregate consumption function is given by C = 300 + 0.75Y. And suppose that, if at full employment, the economy would produce an output and income of 3600 By how much would the government need to raise spending (G) to bring the economy to full employment? (round your answer to the nearest whole value)

Suppose a closed economy with no government spending or taxing initially. Suppose also that intended investment is equal to 200 and the aggregate consumption function is given by C = 300 + 0.75Y. And suppose that, if at full employment, the economy would produce an output and income of 3600 By how much would the government need to raise spending (G) to bring the economy to full employment? (round your answer to the nearest whole value)

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 5.11P

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