Macroeconomics 13th Edition by William Baumol ,Alan Blinder

تمرين 11

This question is a variant of the previous problem that approaches things in the way that a fiscal policy planner might. In an economy whose consumption function and tax function are as given in Test Yourself Question 1, with investment fixed at 320 and net exports fixed at -80, find the value of G that would make GDP equal to 1,800
Reference Test Yourself Question 1,
Consider an economy described by the following set of equations:

Find the equilibrium level of GDP. Next, find the multipliers for government purchases and for fixed taxes. If full employment comes at Y = 1,800, what are some policies that would move GDP to that level