Use #21 to answer #23 21. Given the following macroeconomic data of a hypothetic economy:C = 175 + 0.75(DI)| = 50G = 35X = 30M = 45%DT= 35%3D 23. Using the macroeconomic data in #21 above and assuming a full employmenteconomic output of $800. The federal government should _ (increase or decrease) taxesin the amount ofto close up such gap.increase ; $25cannot be computed based on information providedincrease ; $100decrease ; $100decrease ; $25

Answered: 21. Given the following macroeconomic…

21. Given the following macroeconomic data of a hypothetic economy: C = 175 + 0.75(DI) %3D | = 50 G = 35 X = 30 M = 45 T = 35 %D %D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

Use #21 to answer #23

21. Given the following macroeconomic data of a hypothetic economy:
C = 175 + 0.75(DI)
| = 50
G = 35
X = 30
M = 45
%D
T= 35
%3D

23. Using the macroeconomic data in #21 above and assuming a full employment
economic output of $800. The federal government should _ (increase or decrease) taxes
in the amount of
to close up such gap.
increase ; $25
cannot be computed based on information provided
increase ; $100
decrease ; $100
decrease ; $25

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