Problem 1Given the following data for a closed economyI= 3400 Planned InvestmentG=4000 Government SpendingC= 3,800 + 0.8 Yd Consumption functionT= 1000 Taxes Refer to problem 1. If potential GDP is 20000, by how much should governmentexpenditure change to reach full employmentO $-6400O $40000O $100,000O S-32,000

Given: I = 3400 G= 4000 C=3800+0.8Yd T=1000

Answered: Refer to problem 1. If potential GDP is…

Refer to problem 1. If potential GDP is 20000, by how much should government expenditure change to reach full employment * O $-6400 O $40000 O $100,000 O S-32,000

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter32: The Land Market And Natural Resources

Section: Chapter Questions

Problem 10E

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Question

Problem 1
Given the following data for a closed economy
I= 3400 Planned Investment
G=4000 Government Spending
C= 3,800 + 0.8 Yd Consumption function
T= 1000 Taxes

Refer to problem 1. If potential GDP is 20000, by how much should government
expenditure change to reach full employment
O $-6400
O $40000
O $100,000
O S-32,000

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