Question

For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap....

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 = 2,000 + 0.9 (Y – T ) I p = 2,000 G = 2,500 NX = 200 T = 2,000 Y* = 48,000 Instruction: Enter your responses as integer values. (please show how to do it if possible thank you)

Autonomous expenditure: ___ .

Multiplier:__ .

Short-run equilibrium output: __ .

Output gap: __ .

Autonomous expenditure would need to (reduce/increase) by __ to eliminate the output gap.

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Problem 25-08 (algo) For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and...

    Problem 25-08 (algo) 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 = 2,000+ 0.8 (Y-T) 1P = 1,500 G = 3,000 NX = 200 T = 2.500 Y* = 23,000 Instructions: Enter your responses as whole numbers. Autonomous expenditure: Multiplier: Short-run equilibrium output: Output gap: Autonomous expenditure would need to (Click to select) Aby to eliminate the...

  • An economy is described as follows: C = 400 + 0.6(Y – T) I p =...

    An economy is described as follows: C = 400 + 0.6(Y – T) I p = 200 G = 200 NX = 60 T = 100 Y* = 2,100 a. For the economy described above, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. Instructions:  Enter your responses as absolute values. Autonomous expenditure:    Multiplier:    Short-run equilibrium output:    There is  (Click to select)  a recessionary  an expansionary  no  output gap in the amount of  . b.  Illustrate this economy’s short-run equilibrium on a...

  • i just need the graph An economy is described as follows: C = 3,000 + 0.5...

    i just need the graph An economy is described as follows: C = 3,000 + 0.5 (Y – T) I p = 1,500 G = 2,500 NX = 200 T = 2,000 Y* = 12,000 a. For the economy described above, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. Instructions: Enter your responses as whole numbers. Autonomous expenditure: Multiplier: Short-run equilibrium output: Output gap: b.  Illustrate this economy’s short-run equilibrium on a Keynesian cross diagram. Instructions: On...

  • U ponunt 0 Consume 3. An economy is described by the following equations: (LO2) C =...

    U ponunt 0 Consume 3. An economy is described by the following equations: (LO2) C = 1,800 + 0.6(Y - T) P = 900 G = 1,500 NX = 100 T = 1,500 Y* = 9,000 crical equation linking planned aggregate expenditure to output. onomous expenditure and induced expenditure in this economy. a. Find a numerical equation linking plan b. Find autonomous expenditure a or the economy described in Problem 3: (L03) a. Construct a table like Table 11.1 to...

  • Consider the economy described by the following equations: C = 1,600 + 0.9 (Y – T) I p = 800 G = 1,600 NX = 200 T = 1,600 Y* = 29,000 a. Complete the table shown below to find short-r...

    Consider the economy described by the following equations: C = 1,600 + 0.9 (Y – T) I p = 800 G = 1,600 NX = 200 T = 1,600 Y* = 29,000 a. Complete the table shown below to find short-run equilibrium output. Consider possible values for short-run equilibrium output as they are given in the table below. Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. OutputY...

  • Application: (20 points) The Expenditure-Output Model below shows a hypothetical economy in the short run. Use...

    Application: (20 points) The Expenditure-Output Model below shows a hypothetical economy in the short run. Use the information in the diagram to answer the questions that follow Aggregate Expenditures (5 billions) 210 45°-line AE =C+I+G+ NX Consumption Function 30 0 30 60 90 120 150 180 210 Real GDP ($ billions) (A) (2 points) What is the equilibrium level of Real GDP in this economy? (B) Suppose this economy initially had produced a Real GDP level of $30 billion. (a)...

  • The economy of Ashenvale is currently in a short-run equilibrium, depicted by point "Eo" on the...

    The economy of Ashenvale is currently in a short-run equilibrium, depicted by point "Eo" on the graph The economy is currently experiencing a recessionary gap The size of this gap is $ If there is no intervention, the level of actual unemployment will Economy of Ashenvale 2,400 Y* 2,000 1,600 Vthe 1,300 natural level of unemployment As factor prices change, the unit cost of production will Firms will respond to these chagig ui costs by either of output or charging...

  • If the economy is operating at e no + Is the economy in short-run macroeconomic equilibrium?...

    If the economy is operating at e no + Is the economy in short-run macroeconomic equilibrium? Explain Is the economy in long-run macroeconomic equilibrium? Explain What type of gap exists in this economy? What will happen to the size of the output gap in the long run? LRAS SRASI AD Above full employed equilibrium

  • 2. An economy is described by the following equations C 40 + 0.8(Y-7) P 70 G-...

    2. An economy is described by the following equations C 40 + 0.8(Y-7) P 70 G- 120 T 150 The multiplier in this economy is 5.(LO4. LO5) a Find a numerical equation relating planned aggregate expenditure to output b Construct a table to find the value of short-run equilibrium output. (Hint: The economy is fairly close to full employment) c By how much would government purchases have to change in order to eliminate any output gap? By how much would...

  • For an economy described by the following equations: C = 1,800 + 0.6 (Y – T)...

    For an economy described by the following equations: C = 1,800 + 0.6 (Y – T) I p = 900 G = 1,500 NX = 100 T = 1,500 Y* = 9,000 Assume that the multiplier for this economy is 2.5. Find the effect on short-run equilibrium output of: a. An increase in government purchases from 1,500 to 1,600. Instructions: Enter your responses as whole numbers. Short-run equilibrium output will  (Click to select)  increase  decrease  to  . b. A decrease in tax collections from 1,500...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT