Connect Problem 13-11 An economy is described as follows: C = 400+ 0.6 (Y - T) IP = 200- G= 200 NX = 60 T= 100 Y* = 2,100 a. For the economy described above, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. Instructions: Enter your responses as absolute values
Connect Problem 13-11 An economy is described as follows: C = 400+ 0.6 (Y - T) IP = 200- G= 200 NX = 60 T= 100 Y* = 2,100 a. For the economy described above, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. Instructions: Enter your responses as absolute values
Chapter1: Making Economics Decisions
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![Connect Problem 13-11
An economy is described as follows:
C = 400+ 0.6(YT)
IP = 200-
G = 200
NX = 60
T=
100
Y* = 2,100
a. For the economy described above, find autonomous expenditure, the multiplier,
short-run equilibrium output, and the output gap.
Instructions: Enter your responses as absolute values.
Autonomous expenditure:
Multiplier:
Short-run equilibrium output:
There is (Click to select) output gap in the amount of
b. Illustrate this economy's short-run equilibrium on a Keynesian cross diagram.
Instructions: On the graph below, use the line tool 'PAE' to draw the aggregate
expenditure line using the points at Y = 1,500 and Y = 2,500 only. Then use the point
tool 'Short-term eq!' to identify the equilibrium level of income and expenditure.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faba5408e-9e81-404e-8df7-805557ab48a0%2F39aa2fab-8861-4440-9826-19d3c5993e84%2Fb02izun_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Connect Problem 13-11
An economy is described as follows:
C = 400+ 0.6(YT)
IP = 200-
G = 200
NX = 60
T=
100
Y* = 2,100
a. For the economy described above, find autonomous expenditure, the multiplier,
short-run equilibrium output, and the output gap.
Instructions: Enter your responses as absolute values.
Autonomous expenditure:
Multiplier:
Short-run equilibrium output:
There is (Click to select) output gap in the amount of
b. Illustrate this economy's short-run equilibrium on a Keynesian cross diagram.
Instructions: On the graph below, use the line tool 'PAE' to draw the aggregate
expenditure line using the points at Y = 1,500 and Y = 2,500 only. Then use the point
tool 'Short-term eq!' to identify the equilibrium level of income and expenditure.
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