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Keynesian-cross analysis

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Consider a closed economy to which the Keynesian-cross analysis applies as followsC=300+0.5(Y-T)T = 400I = 400G = 400C = ConsumptionT = TaxesI = Planned InvestmentG = Government SpendingPart 1: If y = 1500 what is planned spending?Part 2: What is the value of inventory accumulation (use – symbol if negative)?Part 3: What is Equilibrium Y?Part 4: what is equilibrium consumption?Part 5: What is private saving?Part 6: What is public saving?Part 7: What is national saving?Part 8: if G is reduced to 200, how much does equilibrium income decrease (Use – for decrease)Part 9: What is the multiplier for government spending?


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