a. what is Eq output level
b. what is the new Eq if the Government spending increases by 50?
c. what is the new Eq is taxes are cut to 50?
PLANNED UNPLANNED
DISPOSABLE PLANNED GOVT AGGREGATE INVENTORY
OUTPUT NET INCOME CONSUMPTION INVESTMENT SPENDING EXPENDITURE CHANGE TAXES 2100 100 300 400
2600 100 300 400
3100 100 300 400 3600 100 300 400
4100 100 300 400
4600 100 300 400
Assume the following Consumption Function C=800+0.6 Y, with Y=Disposable Income For questions e-g, provide the multiplier formulas