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 = 450 + 0.75 (Y – T )
I p = 200
G = 140
NX = 60
T = 100
Y* = 3,200

Instructions: Enter your responses as absolute numbers.

Autonomous expenditure:   

Multiplier:   

Short-run equilibrium output:   

There is  (Click to select)  a recessionary  an expansionary  no  output gap in the amount of  .

Autonomous expenditure would need to   (Click to select)  decrease  stay the same  increase  by  to eliminate the output gap.

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