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Given the Following Data for the Economy of Mokka

Question 1

Essay

Given the following data for the economy of Mokka:
Given the following data for the economy of Mokka: a)Calculate equilibrium GDP. b)Calculate the multiplier. c)If the tax function is: T = 30 + 0.2Y,calculate the government's budget balance. d)Now change government spending by the amount of the surplus or deficit in an attempt to balance the budget.What will be the new equilibrium GDP? e)What is the budget balance at the new equilibrium? a)Calculate equilibrium GDP.
b)Calculate the multiplier.
c)If the tax function is: T = 30 + 0.2Y,calculate the government's budget balance.
d)Now change government spending by the amount of the surplus or deficit in an attempt to balance the budget.What will be the new equilibrium GDP?
e)What is the budget balance at the new equilibrium?

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