YAS = 1548 + 19P – 12Poil YAD = 412 – 33P+ 26G Suppose initially, the Poil = $86 per barrel and government spending is equal to $780. Part (a): Calculate equilibrium GDP and the price level. Part (b): Determine the magnitude of the simple multiplier if oil prices exogenously rise by $1. Part (c): Determine the magnitude of the simple multiplier if government spending exogenously increase: by $1.

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YAS
1548 + 19P - 12Poil
YAD = 412 – 33P+ 26G
%3D
Suppose initially, the Poil = $86 per barrel and government spending is equal to $780.
Part (a): Calculate equilibrium GDP and the price level.
Part (b): Determine the magnitude of the simple multiplier if oil prices exogenously rise by $1.
Part (c): Determine the magnitude of the simple multiplier if government spending exogenously increases
by $1.
Transcribed Image Text:YAS 1548 + 19P - 12Poil YAD = 412 – 33P+ 26G %3D Suppose initially, the Poil = $86 per barrel and government spending is equal to $780. Part (a): Calculate equilibrium GDP and the price level. Part (b): Determine the magnitude of the simple multiplier if oil prices exogenously rise by $1. Part (c): Determine the magnitude of the simple multiplier if government spending exogenously increases by $1.
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