Answered: Using the simple keynesian model, Let Y…

Using the simple keynesian model, Let Y = C + I +G (Closed Economy) C = 1000 + .6Y I= 800 G= 1000 Solve for the equilibrium level of Y Y=$7000 Y=$2800 O Y=$2400 O Y=$2800

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter10: Income And Expenditures Equilibrium

Section: Chapter Questions

Problem 4E

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Question

Using the simple keynesian model,
Let Y = C +I+ G (Closed Economy)
C = 1000 + .6Y
I= 800
G = 1000
%3D
Solve for the equilibrium level of Y
Y=$7000
Y=$2800
Y=$2400
Y=$2800

Using the simple keynesian model,
Let Y = C +I+ G (Closed Economy)
C = 1000 + .75Y
I= 800
G = 1200
What is the spending multiplier?
The multiplier is 10.
The multiplier is 6
The multiplier is 4
The multiplier is infinite.

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