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# Marco land a closed economy, is characterized by following relationship: Consumption function=300+0.8Y Planned investment=\$200 Government spending=\$100 Refer to problem 1. The total expenditure

Marco land a closed economy, is characterized by following relationship:

Consumption function=300+0.8Y

Planned investment=\$200

Government spending=\$100

Refer to problem 1. The total expenditure equation is *

TE= 500+0.8Y

TE= 600 +0.8Y

TE= 400 +0.8Y

TE= 300 +0.8Y

Taxes=\$0

Refer to problem 1. The equilibrium level of income (Y) is *

\$3,000

\$2,000

\$2,500

\$4,000

Refer to problem 1. At the equilibrium level of output, savings equals *

\$200

\$400

\$300

\$700

Refer to problem 1. When the economy is at the natural rate of unemployment (Potential GDP) the output level is \$3500. How much would government expenditure have to change to create full employment? *

\$100

\$-100

\$ 500

\$-500

Apr 15 2021 View more View Less