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a. If GDP is $800 and government spending is G1, the size of Motak's budget deficit is $[ billion. b. If government spending is decreased by the size of the deficit in part (a), draw the new curve labelled G2 in the graphing area above. c. Suppose the multiplier has a value of 2, the new level of equilibrium GDP is $[ billion. d. Motak's deficit at this new level of equilibrium GDP is $| | billion.

a. If GDP is $800 and government spending is G1, the size of Motak's budget deficit is $[ billion. b. If government spending is decreased by the size of the deficit in part (a), draw the new curve labelled G2 in the graphing area above. c. Suppose the multiplier has a value of 2, the new level of equilibrium GDP is $[ billion. d. Motak's deficit at this new level of equilibrium GDP is $| | billion.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I know sir it's bartleby policy sove 3 part but i want solve all 4 part please solve sir i willl rate your answer.

Answer the questions below for the economy of Motak using the graph below. The Economy of Motak NTR G1 Tools 800 700 G2 600 500 400 300 200 100 200 400 600 800 1000 1200 1400 Real GDP a. If GDP is $800 and government spending is G1, the size of Motak's budget deficit is $| billion. b. If government spending is decreased by the size of the deficit in part (a), draw the new curve labelled G2 in the graphing area above. c. Suppose the multiplier has a value of 2, the new level of equilibrium GDP is $ billion, d. Motak's deficit at this new level of equilibrium GDP is $| |billion. Government spending /net taxes
Transcribed Image Text:Answer the questions below for the economy of Motak using the graph below. The Economy of Motak NTR G1 Tools 800 700 G2 600 500 400 300 200 100 200 400 600 800 1000 1200 1400 Real GDP a. If GDP is $800 and government spending is G1, the size of Motak's budget deficit is $| billion. b. If government spending is decreased by the size of the deficit in part (a), draw the new curve labelled G2 in the graphing area above. c. Suppose the multiplier has a value of 2, the new level of equilibrium GDP is $ billion, d. Motak's deficit at this new level of equilibrium GDP is $| |billion. Government spending /net taxes
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