What macroeconomic condition is this economy experiencing

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Reference no: EM131101632

In this economy we have an MPC equal to 0.80, Autonomous Consumption of $600 billion, Planned Investment (I) of $1,000 billion, Government Spending (G) of $1,200 billion and Net Taxes (T) of $1,000 billion. e) If this economy had a full employment level of income equal to $8,000 billion, what Macroeconomic condition is this economy experiencing. f) Using the Spending Multiplier, determine the change in G that is needed to get this economy to be in equilibrium at full employment. Please show your work. g) Using the Spending Multiplier, determine the change in T that is needed to get this economy to be in equilibrium at full employment. Please show your work.

Reference no: EM131101632

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