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Consider an economy with the following equations:

C 300 + 0.75 (Y-T)-300T

200 200r

T=100+0.2Y

L=0.5Y-500i

Y=2500

G=600

M=133,200

Te 0.05

P, 120 (short run price)

If government purchases rises from 600 to 690, calculate the multiplier in the short run

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5OOr 1100 + 675(10 o:4 0

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Consider an economy with the following equations: T=100+0.2Y L=0.5Y-500i Y=2500 G=600 M=133,200 (short run price) If...
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