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Discretionary fiscal policy and focusing on transfer payment

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Y= C + I + G + (X - IM) where:C = 400 + 0.8Y, I = 50, G = 100, X = 50, IM = 100 And also:DI = Y - T + Tr, T = 50, Tr = 150, YF = 5000 Suppose the President and Congress choose to eliminate the output gap by using discretionary fiscal policy and focusing on transfer payments. What would be the new value of transfers (Tr) needed to achieve the goal of full­employment?

Reference no: EM132445867

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