Consider a closed economy model where Y=C+I+G, consumption is given by the function C=90+0.8(Y−T), investment is I=90, government purchases are G=60, and the government is running a budget deficit of 10. Which of the following is false? Group of answer choices Equilibrium disposable income is 990. Equilibrium GDP is 1000. Autonomous spending is 200. The multiplier is 5
Consider a closed economy model where Y=C+I+G, consumption is given by the function C=90+0.8(Y−T), investment is I=90, government purchases are G=60, and the government is running a budget deficit of 10. Which of the following is false? Group of answer choices Equilibrium disposable income is 990. Equilibrium GDP is 1000. Autonomous spending is 200. The multiplier is 5
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider a closed economy model where Y=C+I+G, consumption is given by the function C=90+0.8(Y−T), investment is I=90, government purchases are G=60, and the government is running a budget deficit of 10. Which of the following is false?
Group of answer choices
Equilibrium disposable income is 990.
Equilibrium GDP is 1000.
Autonomous spending is 200.
The multiplier is 5
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