The expenditure multiplier for the economy

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Reference no: EM13691171

C=200+0.75Yd

G=300 ; Government Expenditure

T=200 ; Tax Revenure

I=200 ; Investment

1. I found the equilibrium level which is 2,200

2. At the equilibrium level of output, the aggregate consumption level is:

3. At the equilibrium level of output, the aggregate savings level is:

4. The MPC and MPS for the economy is respectively:

5. The expenditure multiplier for the economy is:

6. The tax multiplier is:

Reference no: EM13691171

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