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Reach the full-employment level of income

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Q: In order to reach the full-employment level of income, government spending must increase by which amount.

Good day, some help (with steps) on the following will be much appreciated!

Given that autonomous spending = R50, Investment = R230, Government spending = R300, marginal propensity to consume = 0.75, Tax = R100 and full employment level of income = R3000, what is the equilibrium level of output and income? In order to reach the full-employment level of income, government spending must increase by which amount.

Reference no: EM131929033

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