Posted by **Shanna** on Friday, April 3, 2009 at 6:37pm.

1) If C = 1000 + 7/8[GDP-1000], I = 700 and G = 1000 and the economy is currently in equilibrium at 400 below full employment GDP, the correct fiscal policy would be to increase G by?

2) If C = 500 + 3/4[GDP- 100], I = 300, G = 400, Xn =- 10 and full employment GDP is 210 less than current GDP, the proper action would be to increase taxes by?

- Economics -
**Alice**, Saturday, April 4, 2009 at 2:15pm
705

3987.5

- Economics -
**Shanna**, Monday, April 6, 2009 at 7:55pm
Thanks Alice for trying, but that's not correct, the first answer is 50 I figured it out, but I'm still having a hard time with the 2nd question.

## Answer this Question

## Related Questions

- economic - 1. If C = 1000 + 7/8[GDP-1000], I = 700 and G = 1000 and the economy ...
- Economics - Explain how it's possible for actual GDP to temporarily exceed full-...
- Economic - All of the following refer to the Economy of Ecoland: - GDP in 1990 ...
- ECON - If C = 500 + 3/4[GDP- 100], I = 300, G = 400, Xn =- 10 and full ...
- macroeconomics - Could you please help me with these couple of problems? Assume ...
- ECONOMICS - this is a table with some questions and i don't know how to solve it...
- economics plz help - this is a table with some questions and i don't know how to...
- Math 8R - HW Qs. Check - Fill in the numbers to continued the pattern. 1000, 900...
- economics - please please please please help me this is due tomorrow!!! this is ...
- Math - one Percentage increase / decrease formula in excel that full all the ...