What is the main drawback and benefit of the proposal

Reference no: EM13202267

a. Find consumption and planned aggregate expenditure.
b. Carefully explain why and how this economy is not in equilibrium.
c. Explain what business will do in response to this disequilibrium.
d. Explain what, in turn, will happen to income.
e. A government official suggests increasing government purchases by $100. What is the main benefit of this proposal? What is the main drawback of this proposal? Give specific numerical answers where possible.

Reference no: EM13202267

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