Question

Answer the following questions given the information below.

Co = 60, G = 330, T = 240, I = 100, X = 60, M = 75, b = mpc = .95 and t =.1, the actual unemployment rate = 3.8%, and the natural unemployment rate is 4.7%.

71. What will be the equilibrium value for Y?

a. $ 1,703.56

b. $ 1,785.64

c. $ 1,908.57

d. $ 2,211.39

e. $ 2,714.11

72. The value of the G multiplier will be ___________.

a. 5.439

b. 5.892

c. 6.305

d. 6.897

e. 7.253

73. A one dollar increase in G will cause Y to increase by _______ dollars.

a. $5.439

b. $5.892

c. $6.305

d. $6.897

e. $7.253

74. The value of the T multiplier will be ___________.

a. 5.914

b. 6.552

c. 6.779

d. 7.114

e. 7.414

75. A one dollar increase in T will cause Y to decrease by _______ dollars.

a. - $ 5.914

b. - $ 6.552

c. - $ 6.779

d. - $ 7.114.

e. - $ 7.414

Answer 1