A step by step solution has been provided. The following data are for the economy of Moksha.C-25 0.7Y1-60a. Calculate equilibrium GDP.Equilibrium GDP is $ 580b. Calculate the multiplier Round your answer to 2 decimal places.The multiplier isc. If the tax function is T20+0.2Y, the size of the budget deficit is $ 53.8Round your answer to 1 decimal place.d. Now, change government spending, by the size of the surplus, or deficit, in an attempt to balance the budget. What will be the newequilibrium income? Round your answer to 1 decimal place.New equilibrium GDP is $347.3e. At the new equilibrium there is a budget deficit os $G-160X-45-0.2Y16.8. Round your answer to 2 decimal places.

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The following data are for the economy of Moksha. C-25 0.7Y 1-60 a. Calculate equilibrium GDP. Equilibrium GDP is $ 580 b. Calculate the multiplier Round your answer to 2 decimal places. The multiplier is 2 c. If the tax function is T20+0.2Y, the size of the budget deficit is $ G-160 X-45-0.2Y 53.8 Round your answer to 1 decimal place.

The following data are for the economy of Moksha. C-25 0.7Y 1-60 a. Calculate equilibrium GDP. Equilibrium GDP is $ 580 b. Calculate the multiplier Round your answer to 2 decimal places. The multiplier is 2 c. If the tax function is T20+0.2Y, the size of the budget deficit is $ G-160 X-45-0.2Y 53.8 Round your answer to 1 decimal place.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section11.B: Algebraic Treatment Of Taxes And Fiscal Policy

Problem 3TY

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