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Answer the following questions given the information below

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Answer the following questions given the information below.

             C_o = 60, G = 330, T = 240, I = 100, X = 60, M = 75, b = mpc = .95 and t =.1, the actual unemployment rate = 3.8%, and the natural unemployment rate is 4.7%.

 

60.       What will be the equilibrium value for Y?

    a.     $  1,703.56     

    b.     $  1,785.64             

    c.     $  1,908.57     

    d.     $ 2,211.39 

    e.     $  2,714.11   

 

 

61.       Assume the same values for the economy given in the prior problem, namely, C_o = 60, G = 330, T = 240, I = 100, X = 60, M = 75, b = mpc = .95 and t =.1, the actual unemployment rate = 3.8%, and the natural unemployment rate is 4.7%. 

The value of the G multiplier will be ___________.

    a.     5.439

    b.     5.892                            

    c.     6.305                            

    d.     6.897

    e.     7.253

 

62.       Assume the same values for the economy given in the prior problem, namely, C_o = 60, G = 330, T = 240, I = 100, X = 60, M = 75, b = mpc = .95 and t =.1, the actual unemployment rate = 3.8%, and the natural unemployment rate is 4.7%.  

A one dollar increase in G will cause Y to increase by _______ dollars.

    a.     $5.439

    b.     $5.892

    c.     $6.305

    d.     $6.897

    e.     $7.253

 

63.       Assume the same values for the economy given in the prior problem, namely, C_o = 60, G = 330, T = 240, I = 100, X = 60, M = 75, b = mpc = .95 and t =.1, the actual unemployment rate = 3.8%, and the natural unemployment rate is 4.7%.  

The value of the T multiplier will be ___________.

    a.     5.914

    b.     6.552            

    c.     6.779                                                         

    d.     7.114

    e.     7.414

 

64.       Assume the same values for the economy given in the prior problem, namely, C_o = 60, G = 330, T = 240, I = 100, X = 60, M = 75, b = mpc = .95 and t =.1, the actual unemployment rate = 3.8%, and the natural unemployment rate is 4.7%.  

A one dollar increase in T will cause Y to decrease by _______ dollars.

    a.     - $ 5.914

    b.     - $ 6.552

    c.     - $ 6.779

    d.     - $ 7.114.

    e.     - $ 7.414

 

 

 

 

65.       Assume the same values for the economy given in the prior problem, namely, C_o = 60, G = 330, T = 240, I = 100, X = 60, M = 75, b = mpc = .95 and t =.1, the actual unemployment rate = 3.8%, and the natural unemployment rate is 4.7%.  

What is the desired percentage change in the actual unemployment rate?

    a.     0.9%

    b.     0.7% 

    c.     0.6%

    d.     0.5% 

    e.     0.4%

 

66.       Given the values in the prior problems, what does Okun's Law tell us to do?

    a.     decrease Y by 2.6%

    b.     decrease Y by 2.4%

    c.     decrease Y by 1.8%

    d.     decrease Y by 1.0%

    e.     decrease Y by 0.8%

 

67.       Given the values in the prior problems, in order to achieve full employment, how many dollars must Y decrease?

             a.  - $ 17.50

             b.  - $ 19.0    

             c.  - $ 22.59                                       

             d.  - $ 28.09

             e.  - $ 30.66

 

68.       Given the values in the prior problems, achieve the desired decrease in Y by using G.  The change in G should be $____ ___________. 

             a.  - $  4.13

             b.  - $  4.45                  

             c.  - $  4.88                                                                 

             d.  - $  5.30

             e.  - $  5.98

 

69.      Given the values in the prior problems, achieve the desired decrease in Y by using T.  The change in T should be $_____.

             a.      +$ 3.32

            b.      +$ 3.72

            c.       +$ 4.26               

            d.      +$ 4.68

             e.       +$ 5.32