Unformatted text preview: Find the aggregate expenditure function.
b. Find the equilibrium level of real GDP.
c. What is the spending multiplier in this model? Tax multiplier?
d. Show that leakages = injections at equilibrium.
e. If taxes increase by $100, what is the new equilibrium level of
f. Show your answers to b) and f) graphically. ...
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- Winter '16
- Mr. Zarzicki