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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

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