For the following economy, find autonomous expenditure, the multiplier, short-ru
ID: 1259132 • Letter: F
Question
For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. By how much would autonomous expenditure have to change to eliminate the output gap?
C
= 2,500 + 0.8 (Y – T )
I p
= 2,500
G
= 3,500
NX
= 300
T
= 3,000
Y*
= 31,400
Instruction: Enter your responses as integer values.
Autonomous expenditure: ____.
Multiplier: ____.
Short-run equilibrium output: _____.
Output gap: _____.
Autonomous expenditure would need to (Click to select) decrease/increase by ____to eliminate the output gap.
C
= 2,500 + 0.8 (Y – T )
I p
= 2,500
G
= 3,500
NX
= 300
T
= 3,000
Y*
= 31,400
Explanation / Answer
Autonomous expenditure: _8800___
Multiplier: _5___
Short-run equilibrium output: _32000____
Output gap: _600____
Autonomous expenditure would need to decrease by _120___to eliminate the output gap.