Lab 3 (Question 2) ~ Lyryx Learning Inc
Lab 3 (Question 2)
Question 2 [16 points]
Research by a team of expert economists has uncovered the consumption and import functions and produced a
forecast of planned investment and exports for the economy of Sunny City as reported below:
What equilibrium real GDP would Sunny City produce?
What are the marginal propensities to consume and import in Sunny City.
What is the size of the multiplier?