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Suppose consumption is given by C=100+0 5(YT) planned investment is 200 government spending is 100 and the

Question

Suppose consumption is given by: C=100+0.5(Y-T), planned investment is 200, government spending is 100, and the

government is running a balanced budget. The equilibrium level of income is:

  • 350
  • 800
  • 700
  • 250

The tax multiplier is:

  • -1
  • 1
  • 2
  • -2

Suppose both government expenditures and taxes increase by the same amount, X. Output must increase by:

Economics

Suppose consumption is given by C=100+0 5(YT) planned investment is 200 government spending is 100 and the