For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. By how much would autonomous expenditure have to change to eliminate the output gap? C = 2,500 + 0.75 (Y – T ) I p = 1,500 G = 2,000 NX = 300 T = 1,500 Y* = 19,900 Instructions: Enter your responses as whole numbers. Autonomous expenditure: 5175 Multiplier: 4 Short-run equilibrium output: 20,700 Output gap: (DO THIS PART) Autonomous expenditure would need to (Click to select) decrease increase by ____________to eliminate the output gap. (DO THIS PART
For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. By how much would autonomous expenditure have to change to eliminate the output gap? C = 2,500 + 0.75 (Y – T ) I p = 1,500 G = 2,000 NX = 300 T = 1,500 Y* = 19,900 Instructions: Enter your responses as whole numbers. Autonomous expenditure: 5175 Multiplier: 4 Short-run equilibrium output: 20,700 Output gap: (DO THIS PART) Autonomous expenditure would need to (Click to select) decrease increase by ____________to eliminate the output gap. (DO THIS PART
Chapter9: Aggregate Expenditures
Section: Chapter Questions
Problem 11E
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For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. By how much would autonomous expenditure have to change to eliminate the output gap?
C | = 2,500 + 0.75 (Y – T ) |
I p | = 1,500 |
G | = 2,000 |
NX | = 300 |
T | = 1,500 |
Y* | = 19,900 |
Instructions: Enter your responses as whole numbers.
Autonomous expenditure: 5175
Multiplier: 4
Short-run equilibrium output: 20,700
Output gap: (DO THIS PART)
Autonomous expenditure would need to (Click to select) decrease increase by ____________to eliminate the output gap. (DO THIS PART
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