Consider a closed economy to which the Keynesian-cross analysis applies as follows
T = 400
I = 400
G = 400
C = Consumption
T = Taxes
I = Planned Investment
G = Government Spending
Part 1: If y = 1500 what is planned spending?
Part 2: What is the value of inventory accumulation (use – symbol if negative)?
Part 3: What is Equilibrium Y?
Part 4: what is equilibrium consumption?
Part 5: What is private saving?
Part 6: What is public saving?
Part 7: What is national saving?
Part 8: if G is reduced to 200, how much does equilibrium income decrease (Use – for decrease)
Part 9: What is the multiplier for government spending?