The Open-Economy Multiplier The change in equilibrium output corresponding multaneous increase in government spending and 00

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 3.3CE
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3.
4.
n
The Open-Economy Multiplier
The change in equilibrium output corresponding
to an simultaneous increase in government spending and
tax by 100
Transcribed Image Text:3. 4. n The Open-Economy Multiplier The change in equilibrium output corresponding to an simultaneous increase in government spending and tax by 100
An open-economy is characterized by the following:
C = 750+ 0.8 (Y-T)
$$1=1500$$
G = 250
T = 200
X = 800
M = 0.4Y
Solve for the following (provide solutions where applicable, and
encircle/box/highlight your final answers):
Transcribed Image Text:An open-economy is characterized by the following: C = 750+ 0.8 (Y-T) $$1=1500$$ G = 250 T = 200 X = 800 M = 0.4Y Solve for the following (provide solutions where applicable, and encircle/box/highlight your final answers):
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