The following information is provided about an open economy with a government. Use the information to answer the questions 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 your formulas Q.1.1 Calculate the level of autonomous spending in this economy. (2) Q.1.2 Calculate the size of the multiplier. (Note: Round your answer to two decimal places.) (3) Q.1.3 Calculate the equilibrium level of income. (2) Q.1.4 Calculate the change in government spending required to reach full employment in the economy. (3

The following information is provided about an open economy with a government. Use the information to answer the questions 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 your formulas Q.1.1 Calculate the level of autonomous spending in this economy. (2) Q.1.2 Calculate the size of the multiplier. (Note: Round your answer to two decimal places.) (3) Q.1.3 Calculate the equilibrium level of income. (2) Q.1.4 Calculate the change in government spending required to reach full employment in the economy. (3

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter10: Income And Expenditures Equilibrium

Section: Chapter Questions

Problem 8E

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