The following information is provided about an open economy with a government.Use the information to answer the question that follow:C = 375 + 0.6Y I = 200 G = 150 X = 50 Z = 30 + 0.1Y T = 0.15Y Yf = 1 335.10Show all the formulas Calculate the level of autonomous spending in this economy. Calculate the size of the multiplier. (Note: Round your answer to two decimal places.) Calculate the equilibrium level of income. Calculate the change in government spending required to reach full employment in the economy.

Solution 1. The level of autonomous spending can be calculated as follows: Autonomous…

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6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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The following information is provided about an open economy with a government.

Use the information to answer the question that follow:

C = 375 + 0.6Y I = 200 G = 150 X = 50 Z = 30 + 0.1Y T = 0.15Y Yf = 1 335.10

Show all the formulas

Calculate the level of autonomous spending in this economy.
Calculate the size of the multiplier. (Note: Round your answer to two decimal places.)
Calculate the equilibrium level of income.
Calculate the change in government spending required to reach full employment in the economy.

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