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28 Sep 2019
C = 0.8(DI) + 1000
C = Consumption expenditure, DI = Disposable Income
I = 5000
I = Investment expenditure
G = 3000
G = government expenditure
X = 2000
X = spending on exports
M = 1800
M = spending on imports
DI = Y - T
Y = real GDP, T = tax revenues/>
T = 3000
Which of the following increases equilibrium real GDP by $2000
Note: you should use the expenditure multipliers from class to get your answer.
a.
increase in government expenditure (G) by $2000 and pay for it by raising taxes (T) by $2000
b.
increase government expenditure (G) by $2000 and pay for it by borrowing money
c.
increase taxes (T) by $2000
d.
decrease taxes (T) by $2000
e.
all of the above
f.
none of the above
C = 0.8(DI) + 1000 | C = Consumption expenditure, DI = Disposable Income |
I = 5000 | I = Investment expenditure |
G = 3000 | G = government expenditure |
X = 2000 | X = spending on exports |
M = 1800 | M = spending on imports |
DI = Y - T | Y = real GDP, T = tax revenues/> |
T = 3000 |
Which of the following increases equilibrium real GDP by $2000
Note: you should use the expenditure multipliers from class to get your answer.
a. |
increase in government expenditure (G) by $2000 and pay for it by raising taxes (T) by $2000 |
|
b. |
increase government expenditure (G) by $2000 and pay for it by borrowing money |
|
c. |
increase taxes (T) by $2000 |
|
d. |
decrease taxes (T) by $2000 |
|
e. |
all of the above |
|
f. |
none of the above |
Chika IlonahLv10
28 Sep 2019