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An economy is described by the following equations: C= 60 +0.75 (Y - T) IP= 100 G= 150 NX= 30 T= 180 Y*= 760 The multiplier in this economy is 4. a. Find a numerical equation relating planned aggregate expenditure to output. Instructions: Enter your response for mpc rounded to two decimal places. PAE= b. Construct a table to find the value of short-run equilibrium output. Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Planned aggregate Output Y expenditure (PAE) Y - PAE 620 720 820 920 1,020 Short-run equilibrium output is c. By how much would government purchases have to change in order to eliminate any output gap? By how much would taxes have to change? In order to eliminate any output gap, government purchases would have to be reduced by In order to eliminate any output gap, taxes would have to be increased by d. If Y*=856, then by how much would government purchases have to change in order to eliminate any output gap? By how much would taxes have to change? In order to eliminate any output gap, government purchases would have to be increased In order to eliminate any output gap, taxes would have to be reduced * by * by

An economy is described by the following equations: C= 60 +0.75 (Y - T) IP= 100 G= 150 NX= 30 T= 180 Y*= 760 The multiplier in this economy is 4. a. Find a numerical equation relating planned aggregate expenditure to output. Instructions: Enter your response for mpc rounded to two decimal places. PAE= b. Construct a table to find the value of short-run equilibrium output. Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Planned aggregate Output Y expenditure (PAE) Y - PAE 620 720 820 920 1,020 Short-run equilibrium output is c. By how much would government purchases have to change in order to eliminate any output gap? By how much would taxes have to change? In order to eliminate any output gap, government purchases would have to be reduced by In order to eliminate any output gap, taxes would have to be increased by d. If Y*=856, then by how much would government purchases have to change in order to eliminate any output gap? By how much would taxes have to change? In order to eliminate any output gap, government purchases would have to be increased In order to eliminate any output gap, taxes would have to be reduced * by * by

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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An economy is described by the following equations: C= 60 +0.75 (Y - T) IP= 100 G= 150 NX= 30 T= 180 Y*= 760 The multiplier in this economy is 4. a. Find a numerical equation relating planned aggregate expenditure to output. Instructions: Enter your response for mpc rounded to two decimal places. PAE= b. Construct a table to find the value of short-run equilibrium output. Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Planned aggregate Output Y expenditure (PAE) Y - PAE 620 720 820 920 1,020 Short-run equilibrium output is c. By how much would government purchases have to change in order to eliminate any output gap? By how much would taxes have to change? In order to eliminate any output gap, government purchases would have to be reduced by In order to eliminate any output gap, taxes would have to be increased by d. If Y*=856, then by how much would government purchases have to change in order to eliminate any output gap? By how much would taxes have to change? In order to eliminate any output gap, government purchases would have to be increased In order to eliminate any output gap, taxes would have to be reduced * by * by
Transcribed Image Text:An economy is described by the following equations: C= 60 +0.75 (Y - T) IP= 100 G= 150 NX= 30 T= 180 Y*= 760 The multiplier in this economy is 4. a. Find a numerical equation relating planned aggregate expenditure to output. Instructions: Enter your response for mpc rounded to two decimal places. PAE= b. Construct a table to find the value of short-run equilibrium output. Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Planned aggregate Output Y expenditure (PAE) Y - PAE 620 720 820 920 1,020 Short-run equilibrium output is c. By how much would government purchases have to change in order to eliminate any output gap? By how much would taxes have to change? In order to eliminate any output gap, government purchases would have to be reduced by In order to eliminate any output gap, taxes would have to be increased by d. If Y*=856, then by how much would government purchases have to change in order to eliminate any output gap? By how much would taxes have to change? In order to eliminate any output gap, government purchases would have to be increased In order to eliminate any output gap, taxes would have to be reduced * by * by
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