What is the multiplier for a lump-sum tax

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Reference no: EM13183389

Given:

C = 2000 + 0.8Yd

I = 400

Yf = 14000

1. What is the equilibrium level of income?

2. Is there an inflationary or a deflationary gap? Why? What is its magnitude?

3. What is the value of the government expenditures multiplier?

4. What is the value of G that would move the economy to full employment at Yf?

5. What is the resulting budgetary deficit?

6. What is the multiplier for a lump-sum tax?

7. What is the balanced-budget multiplier?

Reference no: EM13183389

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