Consumption expenditure: Investment expenditure: Government budget balance Money demand C= 100 +0.8 Y I= 120 -500 Deficit of 50 MD = 200- 2000 i + 0.1Y Money supply: Lump-sum taxes: Current account: T 150 M 100 Where i is the interest rate, Y is the real GDP; Ya is the disposable income Suppose government expenditure (G) rises by 50 $ because of increased expenditure on education. What is the new equilibrium Y? Select one: O a. 1444.44 cross out ОБ. 2000 cross out O c. 2444.28 cross out cross out O d. 4400 cross out е. 4600.54

Consumption expenditure: Investment expenditure: Government budget balance Money demand C= 100 +0.8 Y I= 120 -500 Deficit of 50 MD = 200- 2000 i + 0.1Y Money supply: Lump-sum taxes: Current account: T 150 M 100 Where i is the interest rate, Y is the real GDP; Ya is the disposable income Suppose government expenditure (G) rises by 50 $ because of increased expenditure on education. What is the new equilibrium Y? Select one: O a. 1444.44 cross out ОБ. 2000 cross out O c. 2444.28 cross out cross out O d. 4400 cross out е. 4600.54

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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